China surpasses the US market in terms of Smartphone shipments

The competition of economies between China and the USA has taken another turn. In a recent research conducted by Strategy Analytics, both countries rule rest of the world in smartphone business.

However, there is a neck-and-neck competition between the two in terms of shipments and sales/profits.

According to the survey, China wins the race of smartphone shipment in 2011’s third quarter whereas the USA takes the lead in revenues generated from sales.

From a novice’s angle both shipment and sales look the same, in truth they are different in sheer contrast and also give a thorough insight on the market trends and consumer behaviour patterns.

China has imported 23.9 percent of smartphones in the third quarter, leaving behind the US with 23.3%. The Chinese market grew 58 percent in one year whereas the US market took a dip of 7 percent.

Nokia still ruled the marketplace with 28.5% of units shipped. Its Symbian-based smartphones and to some length the newly introduced Windows Phone-based handsets are the hottest products in China. Samsung secured 2^nd place with 17.6% export of
phones to China.

The US, on the other hand, has been slightly behind, chasing China’s tail. America, being a country of slightly tech-savvy population, has an inclination toward ‘smarterphones’. HTC leads the competition in the US in terms of shipment volumes with 24% share.
Apple’s iPhone is second, closely chasing HTC with 4.8 percent.

The China market is becoming one of the biggest sales fronts for smartphones with an increased public demand. It is expected that in a couple of years, the Chinese market will be the major source of income to all tech goliaths in mobile computing business.

However, that being said, the US market has generated the most revenue for these companies. The aforementioned stats show that the Chinese market is more drawn toward cheap phones or Nokia-like brands whereas the US still has the spark for PDA-based smartphones.

In the light of these conclusions, Executive Director at Strategy Analytics, Neil Mawston advised the smartphone companies:

"The United States remains the world’s largest smartphone market by revenue, but China has overtaken the United States in terms of volume. China is now at the forefront of the worldwide mobile computing boom. China has become a large and growing smartphone
market that no hardware vendor, component maker or content developer can afford to ignore."

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Posted by Usman Khalid on Nov 24 2011. Filed under Business, USA. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry