Chinese Handset Market Penetration

The Chinese handset manufacturing giants have woken from their slumber and are ready to take over the world with their diverse range of handsets, covering both the high-end and low-end.

China has grown to become the world’s largest cellular market with more than 800 million mobile-phone users. Though it has been trailing behind big global brands both at home and abroad, China has finally decided to change these facts. China based mobile manufacturers have started shipping their mobile phones to different parts of the world and the export numbers are increasing exponentially.

  • A Shenzhen based company ZTE has jumped to No. 4 from No. 7 a year ago in terms of phones shipped behind only Nokia, Samsung and LG according to market researcher iSuppli.
  • Huawei, its rival is tied for No. 9 while TCL and Beijing Tianyu are Nos. 11 & 12 respectively.

Chinese cell phones have already penetrated the markets of Central Asia, and these companies are enjoying the immense profits from it. 3G enabled handsets with prices as low as 35$ for a handset these Chinese giants are hastily taking over the markets of India, Pakistan, Bangladesh, Sri Lanka, etc. and becoming a challenge for larger companies already in the market. These Chinese handset manufacturing companies are also looking forward to expanding their markets to the ‘West’ as well, the US and also European Countries by offering smartphones which can be sold for less than 100$ apiece.

In recent years, Huawei and ZTE have made enormous gains in selling networking equipment to carriers worldwide. They’re aiming to build on those telecom relationships to sell handsets. Though in my opinion with such growth the Chinese handsets will soon compete among smartphones they can carve out a profitable slot among consumers who can’t afford top brands.

G’Five International, a Hong Kong based handset manufacturer, founded in 2003 as a producer of molds for electronics parts, started making inexpensive handsets in 2007. The company ships about 1.5 million phones a month from factories in China to India, Pakistan, Sri Lanka, Egypt, and other developing countries. While G Five’s inexpensive models run just $30-$40 apiece, the company plans to get into developed markets with more sophisticated phones. The company already has 300 handsets in its portfolio, and is working on more.

In today’s world with open sources like Android manufacturers can develop their own devices, in short MOBILE PHONES.

Via iSuppli

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