China in Seesaw Battle with US Over Smartphone Lead
China and the US are locked in a close contest for the title of world’s top smartphone market, according to conflicting reports from various industry sources.
China passed the US in Q3 to become the world’s largest smartphone market with shipments of 23.9 million, according to a November 24 report by IT research company IDG. The US posted shipments of 23.3 million smartphones.
But reports from two other research firms has the US in the top spot. In terms of actual smartphone sales the US was ahead in the third quarter by 22.2 million to China’s 21.7 million, says Gartner.
Even in terms of shipments, Canalys says US smartphone shipments exceeded China’s by 200,000 as of the end of Q3.
The difference among the reports is due to differing definitions of smartphones, says Strategy Analytics. The firm also cautioned that a seesaw battle for the top spot will likely continue for the next quarter or two as the US generally sees a bigger spike in holiday sales. However, in the long run China will inevitably widen its lead over the US due to the sheer size of its surging middle class.
However, in terms of total smartphone revenues the US mainains a clear lead thanks to the bigger ratio of high-end smartphones. That lead too will disappear in three or four years, said Thomas Kang of Strategy Analytics.
One surprising piece of data is Nokia’s top spot in China smartphone sales with a 28% market share despite its sliding sales in the US and other markets.
“Historically, Nokia has been a very good brand in China,” Kang said. “The company has a strong presence in China’s retail channels and also offers Chinese language software for text messages used on its phone, something that has appealed to customers in the country.”
However, Nokia’s share of China’s smartphone market has plunged from 70% in 2010 due to growing competition from mid-range Android phones from domestic brands as China’s telecoms push rival smartphone brands.
In the US HTC took the smartphone lead with a 24% market share, while Samsung slipped to a close second with 23% and Apple slipped to third place with a 20.6% share.
In China Apple’s smartphone share is only 12% but continues to enjoy solid growth.