Taipei, Friday, May 27, 2016 07:25 (GMT+8)
scattered thunderstorms
Taipei
29°C
Digitimes Research: Smartphone shipments to China unlikely to surpass 400 million units in 2014
Anthony Chen, DIGITIMES Research, Taipei [Monday 23 June 2014]

China smartphone vendors' shipments started weakening in mid-May with the upstream supply chain also seeing orders turning week despite the fact that several China-based smartphone players are still able to deliver over 10 million units each quarter, according to Digitimes Research.

Among the players, those with tighter relationships with China-based telecom carriers are seeing their 3G smartphone inventories rising rapidly as carriers have been reducing and canceling their subsidies for 3G models and turning to subsidize 4G models.

China vendors' new sub-brand smartphones released between the end of the first quarter and the beginning of the second, for the online channel, boosted the China smartphone supply chain's sales to a new high in April, which also helped smartphone vendors' sales do the same in early May. However, these devices were only able to compete over price and lacked differentiation from each other, and support only 3G, significantly reducing their lifecycle.

The high cost of 4G service, unsatisfactory communication quality during the initial period, and the limited availability of 4G entry-level smartphones have caused consumers in China to be unwilling to upgrade their services to 4G. In addition, as carriers just stopped providing subsidies for entry-level/mid-range 3G smartphones in May and started turning to subsidize 4G models in June, some consumers have delayed their plans to purchase a new smartphone for the second quarter.

Digitimes Research believes that vendors will gradually digest their 3G inventories in the third quarter, and 4G smartphones priced below CNY1,000 (US$161) will start to appear in July, pumping up China's domestic smartphone shipments. However, China's smartphone shipments are unlikely to break 400 million units as originally expected due to 4G smartphones' failure to become popular in China in the first half.

This article is an excerpt from a Digitimes Research Quarterly Data Report (China smartphone market and industry – 2Q 2014). Visit our latest Data reports.

Realtime news
  • Digitimes Research: Top-5 Wintel notebook vendors see combined shipments down in April

    Before Going to Press | 9h 11min ago

  • Quanta Computer, Wiwynn to showcase OCP-compatible 19-inch rack servers at Computex Taipei 2016

    Before Going to Press | 9h 12min ago

  • Digitimes Research: HMDs trending to replace Cave for professional VR

    Before Going to Press | 9h 13min ago

  • Global, Taiwan 2016 shipments of notebooks, tablets to fall on year, says MIC

    Before Going to Press | 9h 16min ago

  • Taiwan market: Oppo to launch R9 Plus smartphone

    Before Going to Press | 9h 17min ago

  • Establishment of holding companies is new model of transforming Taiwan high-tech industries, says Acer founder

    Before Going to Press | 9h 18min ago

  • OLED unlikely to replace LCD, says GLT chairman

    Before Going to Press | 9h 20min ago

  • Xiaomi Technology offers drones

    Before Going to Press | 9h 23min ago

  • ASE, SPIL to jointly establish holding company

    Before Going to Press | 9h 25min ago

  • Global Unichip to deal out 2015 dividend of NT$3

    Before Going to Press | 9h 25min ago

  • Holtek 2016 revenues to rise 6%, says report

    Before Going to Press | 9h 26min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2016

RESEARCH EXTRAS | Apr 1, 15:47

Strong demand from the cloud computing market helped Taiwan's server shipments grow 12.5% on year to break 10 million units in 2015, accounting for 90.7% of worldwide shipments and the percentage is expected to grow to 91.1% in 2016. This Digitimes Research Special...

China smartphone touch-panel industry 2016 forecast

CHINA SMARTPHONE | Feb 6, 17:23

In 2016, China's smartphone panel capacity is expected to increase steadily, with BOE and Tianma expanding 6G capacity and GVO and Truly Optoelectronics increasing their share of handset panel production. This Digitimes Research Special Report analyzes the key...

Taiwan handsets – 1Q 2016

TAIWAN MOBILE DEVICE | May 26, 16:04

Taiwan's handset brand vendors and ODMs both saw sharp declines in their shipments in the first quarter of 2016. The brand vendors' shipments will improve in the second quarter due to launches of new models, but the ODM shipments will drop further.

China smartphone market and industry - 1Q 2016

CHINA SMARTPHONE | May 25, 17:39

Smartphone shipments to the China market in the first quarter of 2016 reached 104.7 million units

Taiwan large-size LCD panels – 1Q 2016

TAIWAN LCD PANEL | May 16, 14:02

Taiwan's large-size TFT LCD panel production in the first quarter of 2016 took a major hit as a strong earthquake damaged Innolux's fabs in southern Taiwan.

China smartphone touch-panel industry 2016 forecast
Display panels for wearable devices
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.