Sign in Subscribe
Telecommunications equipment industry

Foreign Mobile Phone Makers Tighten Grip on China Market

Strategic Insights

— 1 min read

Foreign mobile phone makers, led by Finland's Nokia and South Korea's Samsung Electronics, are expanding their presence in China, as consolidation sweeps away smaller mainland players. Industry experts say that the world's top three handset suppliers are gaining market share at the expense of smaller competitors. The Chinese government's decision to allow more suppliers into the domestic market has accelerated the consolidation process, with research firm Gartner predicting that 25 to 30 handset vendors will remain in China by the end of 2008.

Key Takeaways:

  • Foreign mobile phone makers, led by Nokia and Samsung, are expanding their presence in China, gaining market share at the expense of smaller mainland competitors.
  • The Chinese government's decision to allow more suppliers into the market has accelerated consolidation, with Gartner predicting 25-30 handset vendors will remain in China by the end of 2008.
  • Nokia captured a 33% market share worldwide in the second quarter, with 11% of its global revenue coming from China in 2007.
  • Nokia is targeting low-income earners with a new line of basic mobile handsets, priced at around 400 yuan each, in a bid to increase its market share in China.
  • Partnerships with local players, such as Motorola's alliance with Huawei Technologies, are driving growth at overseas companies.
  • China's mobile phone subscribers are expected to increase to over 640 million by 2010, up from an estimated 446.59 million in 2008.
  • Nokia's global mobile phone shipments are expected to reach 101 million units in the fourth quarter, up 20% from 84 million units in the previous year.

Statistics:

  • China's mobile phone subscribers may increase to over 640 million by 2010.
  • 25-30 handset vendors are expected to remain in China by the end of 2008.
  • Nokia gained a 33% market share worldwide in the second quarter.
  • Global mobile phone shipments are expected to reach 101 million units in the fourth quarter, up 20% from 84 million units in the previous year.
  • Nokia earned 11% of its Euro34.19 billion in global revenue from China in 2007.

Sources:

  • BDA China: market research firm
  • Strategy Analytics: market research firm
  • Gartner: research firm
  • Frost & Sullivan: research firm

Read more