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Outlook healthy for Chinese Smartphone Market

Subscriber data from China’s Ministry of Industry and Information Technology - as well as the country’s major operators China Mobile, China Unicom and China Telecom - indicates that the Chinese market is on track to meet previous predictions in the coming years through 2016.

Chinese operators focused on 3G to grow their businesses and as of March 2012 the subscriber base is around 15% of the overall mobile market, reports BMI.

The research firm found that though there are signs of slowing growth in smartphone uptake, widespread industry loss-leading initiatives have meant that handsets costing less than 1000 Yuan have become common. This indicates that the current competition is more concerned with market share for future profitability than with short term profits.

Handset vendors, both domestic and foreign in the case of Apple, Nokia and Samsung, are seeking to benefit from the growth in smartphone usage. Apple has partnered with two operators, but the premium iPhone is still out of reach for the majority of consumers buying a smartphone.

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