China Smartphone Market Becoming Saturated, Study Finds

24 Jan

The China smartphone market is about to be a lot more difficult to do business in as the industry becomes more and more crowded, a recent series of studies suggest.

According to C.K Lu, one of the principal analysts from Gartner Inc, China’s smartphone penetration rate will reach up to as high as 90% this year, and approximately 395 million smartphone units will be sold within the country. In the third quarter of 2013 alone, the total number of smartphones sold to China’s end consumers is said to have already surpassed 82% of the country’s “total mobile device sales,” a sign which indicates their increasing adoption within the market.

Where the problems for China’s smartphone industry will likely arise, according to Lu, is from the overcrowding of manufacturers and devices and the market’s eventual “saturation.” Should the latter trend worsen, mobile phone companies will find it hard to “maintain steady growth in China starting in 2014,” Lu said.

One additional issue worth pointing out, aside from the crowded state of the market, is the Chinese consumers’ evolving tastes. Even with smartphone devices growing increasingly cheaper in the China market, more and more consumers are hoping to find products will offer “value for money,” “brand strength” and “good customer care,” according to Lu.