The global smartphone market is rapidly expanding, but it has not reached this exaggeration. According to Strategy Analytics, between 2010 and 2011, smartphone shipments across the global market grew by 64%. In 2012, this growth rate has been reduced to 43%, and in 2013, the growth rate is likely to slow to 36%.
The growth rate of the entire market is lower than the expected growth rate of the manufacturers. Therefore, there is always a need for compromise.
Samsung Electronics and Apple Computer control the entire smartphone market. A small change in the market share of the two companies will lead to a significant increase in the share of other small companies. However, the leaders of these two markets have maintained growth, and their smartphone market share has not been reduced at all. According to IDC, the market share of the smartphones of these two manufacturers increased from 46% earlier to 51% in the fourth quarter of 2012. The vendors that followed, including ZTE, Huawei, and LG, each had a market share of about 5% or less.
Mark Newman, an analyst at Sanford C. Bernstein, predicts that Chinese manufacturers will grow faster in the long run because these manufacturers pay more attention to the Chinese domestic market and low-end smart phones, which have greater growth potential. Similarly, hard competition means that not every vendor can be a winner. Lenovo recently adjusted their strategy. According to data from Gartner Research, by the third quarter of 2012, its smart phones accounted for a rapid increase in the Chinese market share from 1.7% to 15%. It is already the second largest Chinese smart phone manufacturer after Samsung.
For consumers, a large number of shipping targets have a positive significance, because a large number of smart phones shipped will give them more choices and lower prices. However, for smart phone manufacturers, the industry's optimism in shipment targets is somewhat worrying. The smart phone market will always maintain a fierce battle. Producing smart phones that exceed market demand will reduce the profits of each manufacturer.
The growth rate of the entire market is lower than the expected growth rate of the manufacturers. Therefore, there is always a need for compromise.
Samsung Electronics and Apple Computer control the entire smartphone market. A small change in the market share of the two companies will lead to a significant increase in the share of other small companies. However, the leaders of these two markets have maintained growth, and their smartphone market share has not been reduced at all. According to IDC, the market share of the smartphones of these two manufacturers increased from 46% earlier to 51% in the fourth quarter of 2012. The vendors that followed, including ZTE, Huawei, and LG, each had a market share of about 5% or less.
Mark Newman, an analyst at Sanford C. Bernstein, predicts that Chinese manufacturers will grow faster in the long run because these manufacturers pay more attention to the Chinese domestic market and low-end smart phones, which have greater growth potential. Similarly, hard competition means that not every vendor can be a winner. Lenovo recently adjusted their strategy. According to data from Gartner Research, by the third quarter of 2012, its smart phones accounted for a rapid increase in the Chinese market share from 1.7% to 15%. It is already the second largest Chinese smart phone manufacturer after Samsung.
For consumers, a large number of shipping targets have a positive significance, because a large number of smart phones shipped will give them more choices and lower prices. However, for smart phone manufacturers, the industry's optimism in shipment targets is somewhat worrying. The smart phone market will always maintain a fierce battle. Producing smart phones that exceed market demand will reduce the profits of each manufacturer.
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