Rise of Chinese Smartphone Brands Puts Pressure on Taiwan’s Smartphone Companies, Analysts Say

18 Mar

The Chinese smartphone industry is booming, and as renowned hardware makers such as Lenovo make a further push towards foreign markets by purchasing Motorola, more and more of Taiwan’s existing smartphone brands—for instance, Asustek and Acer—will have a tougher time strengthening their presences in the market.

As noted by South China Morning Post’s contributing reporter, Ralph Jennings, regarding the impact of the recent Lenovo-Motorola deal…

“Lenovo’s purchase of the Motorola mobile unit will hobble two giant rivals from world hi-tech hardware hub Taiwan, further frustrating three years of efforts to generate world smartphone market share considered key to their long-term survival.”

Citing the existing data collected by industry analysts on Acer and Asus (the two “giant rivals” mentioned above), Jennings sees the biggest problems for Taiwanese smartphone companies as being their lack of “a unique corner in the market,” their relatively small domestic consumer base (compared to that of their Chinese rivals), and their general inability to price smartphones competitively.

Not surprisingly, the lack of focus on emerging markets is also perceived by some to be a major issue that Taiwanese smartphone manufacturers should tackle as quickly as possible.

Market Intelligence & Consulting Institute, a Taiwan based research group, told SCMP recently that Taiwanese smartphone companies can try acquiring “local brands” in emerging markets as a “short cut to boost their market share,” but noted that “whether they will actually adopt this strategy remains to be seen.”