For the complete report, get in touch with us at : info@netscribes.com The Smartphones Market in China is part of Netscribes Telecommunications Industry Series. The market will be boosted by the increase in the usage of mobile internet along with the availability of 3G services and launch of affordable Smartphones with versatile features and applications. Smartphones have also gained popularity amongst the youth due to the available features that suits the business and entertainment needs. The report begins with the introduction of Smartphone as a device, highlighting key features and description. This is followed by the market overview of Smartphone in China, providing details on the industry size and growth. The section also provides the share of brand attention rates of the leading players operating in the Smartphone space in China. The report also discusses the Smartphone operating system attention rates alongwith some noteworthy trends in the recent past. Factors driving the growth of Smartphone market in China are also explained in detail. Rising disposable income and emergence of an increasingly affluent middle class are major drivers for the industry while constantly falling prices are bringing Smartphones within the reach of more common people. Advent of 3G services facilitating better speed and connectivity is stirring demand for Smartphones in China while rising popularity of mobile internet usage further induces demand for Smartphones with advanced internet features. The players operating in the market also face challenges which are impeding their development and growth. Major challenges such as security threats from viruses and malicious software; and dominance of counterfeit and smuggled phones adversely affect the Smartphone industry in China. Emerging trends in the Smartphone market include increasing popularity of android based phones, emerging hardware trends, emergence of Smartphones with localized flavour, Smartphone manufacturers venturing into tablet computers business, Smartphones becoming popular for payments and banking services and growing demand for more embedded features in Smartphones. The competition section outlays the competitive landscape of the Smartphone industry in China briefing about the domestic and foreign players existing in the market. This section provides a ranking of the players based on the revenue and profits followed by a 3 dimensional analysis of key players’ revenues, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario. The competition section further provides a price to feature matrix, comparing various manufacturers operating in China based on these parameters. This section offers a list of the all the models available with the manufa

1. Smartphone Market – China
September 2011

2. Executive Summary
China is presently the largest market for cellular devices globally and hence presents
tremendous potential for further evolution of the smartphones market
Market Sale of smartphones in China is expected to top a mn units in 20-- and account for nearly half
of the total market for mobile handsets by volume
LE
Drivers: Challenges:
– Rising urban middle class population with – Security threats
Drivers &
Challenges
P
increasing disposable income
– 3G services in China
M
– Popularity of mobile internet
– Dominance of counterfeit and smuggled
goods
A
– Advanced features and applications
S
– Falling price levels
Increasing Popularity of Android Based Phones
Emerging Hardware Trends
Emergence of Smartphones with Localized Flavour
Trends Smartphone Manufacturers Venture into Tablet Computers Business
Smartphones Becoming Popular for Payments and Banking Services
Growing Demand for More Embedded Features
Major Players
Competition Player 1 Player 2 Player 3 Player 4
SMARTPHONE MARKET IN CHINA 2011.PPT 2

3. •Introduction
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Product Portfolio
•Key Developments
•Key Takeaways
SMARTPHONE MARKET IN CHINA 2011.PPT 3

4. Smartphones sales in the China is expected to top a mn
units in 20--, accounting for b% of total handset sales
Smartphone Market – Overview Market Size and Growth
• China had over c mn mobile phone users in March
mn units
20--, it is expected to reach d mn by end of 20-- n
100 +o%
LE
End of 20--, over e mn users used internet through mobile
phones m
P
China is expected to have e mn smartphone users by 20-- 50
l
• Sale of smartphones in the China market are
of total handset sales
SAM
expected to top a mn units in 20--, accounting for b%
Market penetration of smart phones being only g% (20--)
represents huge potential for a largely untapped customer
0
20-- 20--
Smartphone Brand Attention Rates (20--)
20--e
base
• Comparatively smart phones market is more 2.3% Brand 1 Brand 5
concentrated than the mobile phone market in China 4.9%
3.2% Brand 2 Brand 6
h% of the attention of the market is held by the top i 6.1% 5.8% Brand 3 Brand 7
brands in the industry
8.4% 50.3% Brand 4 Brand 8
Although Nokia dominates the market but it faced decline
in attention rate from j% in 20-- to k% in 20--
9.2%
9.8%
Source:
SMARTPHONE MARKET IN CHINA 2011.PPT 4

5. Drivers & Challenges – Summary
Drivers
Rising Middle Class Population with
Increasing Disposable Income Challenges
Falling Price Levels Security Threats
3G Services in China Dominance of Counterfeit and
Smuggled Phones
Popularity of Mobile Internet
Advanced Features and Applications
SMARTPHONE MARKET IN CHINA 2011.PPT 5

6. Trends – Summary
Increasing Popularity of Android based phones
Emerging Hardware Trends
Emergence of Smartphones with Localized Flavour
Key Trends
`
Smartphone Manufacturers Venture into Tablet Computers Business
Smartphones Becoming Popular For Payments and Banking Services
Growing Demand for More Embedded Features
SMARTPHONE MARKET IN CHINA 2011.PPT 6

7. Competition – Summary (1/2)
SAMPLE
Revenue and Profit for Major Players of 20--
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000
USD mn
Player 1 137,948
46,358
Player 2 65,225
25,684
Player 3 56,917
17,419
Player 4 19,907
8,825
Player 5 11,460
2,982
Key Mobile
Player 6 10,657
3,482 Manufacturers in
9,560 China
Player 7
2,876
Player 8 8,440
2,528
Player 9 3,225
551 Revenue
Player 10 736 Profit
161
Player 11 157
11
Source:
SMARTPHONE MARKET IN INDIA 2010.PPT
FOOD RETAIL CHINA 2011.PPT 7

8. Competition – Summary (2/2)
Net Profit USD mn
SAMPLE
50,000
Size of the Bubble represents Market 85,669.5
45,000 Capitalization in USD mn
40,000
35,000
30,000
25,000 339,361.7
20,000
20,661.4
15,000
10,000
13,844.6
10,998.8
5,000
22,439.1 11,306.5
973.5
0 1,748.1
489.3
-5,000 Revenue USD mn
-20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
Player 1 Player 2 Player 3 Player 4 Player 5
Player 6 Player 7 Player 8 Player 9 Player 10
Source:
SMARTPHONE MARKET IN CHINA 2011.PPT 8

9. Smartphone Specifications (1/6)
SAMPLE
Player 1
Model Price (USD) Operating System 3G Wi-Fi Memory GPS/Geo Tagging
Model 1 199/299 iPhone Os 5.0 16/32
Model 2 49 iPhone Os 3.0 8
HTC Corporation
Model Price (USD) Operating System 3G Wi-Fi Memory GPS/Geo Tagging
Model 3 7.6 Windows Mobile 6.1 NA NA NA
Model 4 412.8 Windows Mobile 6.5 NA 32
Model 5 738.9 Windows Mobile 7 8
Model 6 917.4 Windows Mobile 5 NA NA NA
Model 7 N.A. Windows Mobile 5 NA NA NA
Model 8 417.4 Windows Mobile 6.1 NA
Model 9 198.8 Windows Mobile 6.1 NA
Model 10 517.4 Android 2.1 32
Model 11 521.7 Windows Mobile 6 NA
Model 12 N.A. Windows Mobile 6 NA NA NA
Model 13 N.A. Windows Mobile 6.1 NA NA
Model 14 N.A. Windows Mobile 6.1 NA N NA
Model 15 N.A. Windows Mobile 5 NA NA NA
Model 16 1738.9 Windows Mobile 5 NA NA
Source:
SMARTPHONE MARKET IN CHINA 2011.PPT 9

10. Thank you for the attention
Smartphone Market - China report is a part of Netscribes’ Telecommunication Industry Series.
For more detailed information or customized research requirements please contact:
Jitendra Punjabi Gagan Uppal
Phone: +91 33 4064 6215 Phone: +91 22 4098 7530
E-Mail: jitendra.punjabi@netscribes.com E-Mail: gagan.uppal@netscribes.com
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SMARTPHONE MARKET IN CHINA 2011.PPT 10