Devices & Platforms

China’s smartphone explosion driven by less expensive handsets

Low-cost devices are set to have a dramatic impact on the Chinese smartphone market...

Low-cost devices are set to have a dramatic impact on the Chinese smartphone market, according to analysis firm Canalys. By 2015, around 40% of smartphones sold in the country are expected to retail for less than US$200.

According to Canalys analyst Nicole Peng, the influx of low-cost smartphones will be driven by Chinese brands. ‘Established mobile phone makers, such as Yulong, Gionee and K-Touch, have the advantages of strong operator relationships and channels. In addition, emerging vendors, like Xiaomi and Green Orange, are building a reputation quickly in the youth market,’ she said.

China’s smartphone sector has been shaken up by Internet companies making moves into the market, with Alibaba and Baidu both expected to introduce a low-cost offering. Public awareness of smartphone hardware specs is also increasing, and this in turn is driving down prices. ‘Price erosion is accelerating,’ notes Peng, adding that a device as powerful as the Lenovo A65 – which retails for around US4110 – would fetch US$158 as of Q4 2011.

China’s smartphone sales are surging ahead of those in the rest of the world, with the country single-handedly responsible for a third of the year-on-year increase in smartphone shipments between 2011 and 2012. Low-cost devices are expected to constitute around a quarter of all sales in 2012, although this market will be dominated by Chinese vendors, with internationals such as Apple, Samsung and HTC remaining at the high end of the market.



More Articles you may be Interested in...