[BUSINESS] Chinese Companies Catch Up in Smartphone Market
Maximiliano VCHK, Oct. 30, 2013, 2:07 p.m.
Chinese companies are making a strong showing on the global smartphone market, with native company Huawei overtaking LG Electronics for the number 3 spot in global sales volume.
Market research company Strategy Analytics stated that Huawei sold 12.7 million smartphones worldwide between July and September, beating LG Electronic's 12 million. Huawei took the number three spot with a share of 5 percent in the fourth quarter of last year, and passing LG the following quarter.
Currently, more than one in five smartphones sold worldwide are Chinese made. Lenovo, another Chinese firm, sold 10.8 million units for the fifth place spot, followed closely by ZTE and Coolpad. Huawei, Lenovo, ZTE and Coolpad all combined are worth a total of 19 percent of the global market.
Some of the reasons that Chinese companies have been making such big waves in the market is that technology is now available to a wider variety of firms, giving latecomers a shot at success. When smartphones were first introduced, the technology was only available to a few leading companies. Another reason is that China has the world's largest domestic market with 315.5 million units sold. That number is more than the combined domestic markets of the U.S., Korea, India, and Japan.
The global market is still being dominated by the collective efforts of Samsung and Apple, both of which account for 48.6 percent of the entire market. Samsung slowly began to edge ahead in sales volume, posting record sales for the third straight quarter. Samsung sold 68.4 million phones first quarter, 76 million in the second, and 88.4 million in the third quarter.
Apple ranks number one as far as operating profit goes, reaching 10 billion USD in their third quarter. Apple stated that they posted sales of $37.47 billion USD, and operating profit of $10.03 billion USD.
Some market analysts state that both Samsung and Apple's future will be tied with the Chinese market, whether they like it or not. When the new iPhone launched, Apple included China among the list of countries who would receive the item first. Thanks to this strategic move, sales have risen from 4.6 million USDto 5.7.