China will overtake US in smartphone revenue this year
The population of China has long eclipsed the US, and that number is a staggering difference that’s been largely ignored by smartphone manufacturers. This year might change that, because Strategy Analysts are predicting that for the first time, the Chinese smartphone market might be gaining on the US in terms of revenue by becoming the world’s largest market for handsets.
China’s impressive mobile growth is being driven by the country’s rapid shift to 3G and 4G smartphones. Major brands, such as Samsung, Huawei and Lenovo, are aggressively expanding their distribution channels and product ranges across the region to meet extremely strong demand from Chinese consumers for more advanced mobile phones.
Strategy analysts predict that China’s growth will be at a rate of 15% annually with revenues for mobile phones surging to 53% growth rates. This means the country will likely sell 429.8 million phones this year with about $87.2 billion (US $) in revenue. Conversely, the US’s 163.4 million units will grow at 0% while accumulating only $59.5 billion in revenue. The major difference here is profit per units, but if China’s market is consuming more at a faster rate, other affordable mobile manufacturers might have an edge over Apple’s more expensive products.