Table of Contents
Executive Summary
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- The market
- A steadier growth in 2014 after years of continuous growth
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- Figure 1: Mobile phone sales and growth rate in China, by volume, 2011-14
- Smartphones drive growth of the market
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- Figure 2: Non-smartphones and smartphones split, by volume share, 2008-14
- Market drivers and growth barriers
- The forecast
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- Figure 3: Mobile phone forecast, by volume sales, 2009-19
- Companies and brands
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- Figure 4: Top mobile phone companies in China, by volume share, 2012-14
- Figure 5: Top mobile phone companies in China, by value share, 2012-14
- The consumer
- Mobile phone ownership
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- Figure 6: Mobile phone and smartphone ownership, December 2013 and October 2014
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- Figure 7: Types of smartphone ownership, December 2013 and October 2014
- Brands, price range and screen size of mobile phone owned
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- Figure 8: Brand of smartphones being used, October 2014
- Figure 9: Price of smartphones being used, DECEMBER 2013 and October 2014
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- Figure 10: Screen size of smartphones being used, October 2014
- Information source of smartphone purchase
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- Figure 11: Information sources of smartphone purchase, October 2014
- Importance of brands in the purchasing process
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- Figure 12: Importance of brands in the purchasing process, by consumers who think the statement is important, October 2014
- Future purchase intentions of smartphones
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- Figure 13: Future purchase intentions of smartphones, October 2014
- Figure 14: The ownership of smartphones and future purchase intentions of smartphones, by brand, October 2014
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- Figure 15: The ownership of smartphones and future purchase intentions of smartphones, by price, October 2014
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- Figure 16: The ownership of smartphones and future purchase intentions of smartphones, by screen size, October 2014
- Attitudes towards mobile phones
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- Figure 17: Attitudes towards mobile phones, October 2014
- Key issues
- Build brand loyalty in three ways
- Unique selling point still matters even if it would make you a niche player
- Large screen is the trend but don’t forget small screen either
- What we think
Issues and Insights
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- Build brand loyalty in three ways
- The facts
- The implications
- Unique selling point still matters even if it would make you a niche player
- The facts
- The implications
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- Figure 18: Summary of highlighted product features of selected mobile phone brands, December 2014
- Large screen is the trend but don’t forget small screen either
- The facts
- The implications
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- Figure 19: Consumer segmentation, by screen size preference, by demographics, October 2014
Trend Application
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- Prove it through word of mouth
- Never stop helping consumers by perfecting what the phone can do
- Consumers are more receptive to domestic brands than ever before
Market Size and Forecast
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- Key points
- Mobile phone market expands with strong growth
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- Figure 20: Mobile phone sales in China, by volume and growth, 2008-14
- Figure 21: Mobile phone sales in China, by value and growth, 2011-14
- Smartphones dominate mobile phone market
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- Figure 22: Non-smartphones and smartphones segment share, by volume, 2008-14
- Figure 23: Mobile phone volume growth rate, by non-smartphones and smartphones, 2008-14
- Market drivers
- Increased income and falling prices make mobile phones more affordable
- 4G network further boosts mobile connectivity
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- Figure 24: 2G, 3G and 4G-capable mobile phones sales split, by volume share, 2008-14
- Further market liberation with VNO licence issuance to private sector players
- Low market barrier for new entrants
- Smartphone has become an integral part of urban lifestyle
- Market barriers
- Government handset subsidies cut
- High smartphone ownership in urban tier one to three cities
- Lack of breakthrough innovation
- Threat from small-screen tablets
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- Figure 25: Mobile phone sales and tablet computers sales in China, by volume, 2010-14
- Market forecast
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- Figure 26: Mobile phone volume sales, China, 2009-19
Market Share
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- Key points
- Samsung’s leading position is under threat
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- Figure 27: Top 10 mobile phone companies in China, by sales volume share, 2012-14
- Figure 28: Top 10 mobile phone companies in China, by value share, 2012-14
- Xiaomi’s success is phenomenal
- Large-screen iPhones will fuel Apple’s revenue
- Microsoft is struggling due to the weak Windows OS
- Domestic brands are growing to occupy half of the volume market
Who’s Innovating?
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- Key points
- Xiaomi’s smart home idea extends the usage occasion of smartphones
- Curved and soft screens will become a trend
- Fingerprint readers become a standard configuration
Companies and Brands
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- International players
- Apple Inc.
- Latest developments
- Samsung Group
- Latest developments
- Microsoft Corporation
- Latest developments
- Sony Corporation
- Latest developments
- Domestic brands
- Lenovo Group Limited
- Latest developments
- Xiaomi Inc.
- Latest developments
- Huawei Technologies Co. Ltd.
- Latest developments
- Coolpad Group
- Latest developments
- Guangdong OPPO Electronics Industry Co., Ltd.
- Latest developments
- Zhongxing Telecommunication Equipment Corporation (ZTE Corporation)
- Latest developments
The Consumer – Mobile Phone Ownership
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- Key points
- Smartphone ownership further increased
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- Figure 29: Mobile phone and smartphone ownership, December 2013 and October 2014
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- Figure 30: Types of smartphone OS currently in use, December 2013 and October 2014
- Differences in iPhone and Android smartphone user profile
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- Figure 31: Types of smartphone OS currently in use, by demographics, October 2014
The Consumer – Brands of Mobile Phone Owned
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- Key points
- International brands are still leading the smartphone market
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- Figure 32: Brand of smartphones being used, international vs domestic brands, October 2014
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- Figure 33: Brand of smartphones being used, October 2014
- User profile of leading brands
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- Figure 34: Brand of smartphones, by demographics, October 2014
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- Figure 35: Brand of smartphones being used, by type of company/organisation working with, October 2014
- Apple
- Samsung
- Huawei
- Xiaomi
The Consumer – Price Range of Mobile Phone Owned
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- Key points
- Consumers are upgrading to more premium smartphones
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- Figure 36: Price of smartphones being used, DECEMBER 2013 and October 2014
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- Figure 37: Price of smartphones being used, by mobile phone operating system, October 2014
- Who are buying premium smartphones?
- Nearly half of high-income consumers use premium smartphones
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- Figure 38: Price of smartphones being used, by monthly personal income, October 2014
- Premium smartphones attract well-educated group
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- Figure 39: Price of smartphones being used, by education level, October 2014
- Tier one cities have more premium smartphone users
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- Figure 40: Price of smartphones being used, by city tier, October 2014
The Consumer – Screen Size of Mobile Phone Owned
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- Key points
- About a third are using large-screen smartphones
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- Figure 41: Screen size of smartphones being used, October 2014
- The right move for Apple to launch big size screen
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- Figure 42: Screen size of smartphones being used, by mobile phone operating system, October 2014
- Who are large- and small-screen smartphone users?
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- Figure 43: Screen size of smartphones being used, by demographics, October 2014
- Large screen users
- Small-screen users
The Consumer – Information Source of Smartphone Purchase
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- Key points
- Information from online retailers second to family/friends’ recommendation
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- Figure 44: Information sources of smartphone purchase, October 2014
- Males are more influenced by online information
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- Figure 45: Information sources of smartphone purchase, by gender, October 2014
- Households with children are more cautious on smartphone selection
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- Figure 46: Information sources of smartphone purchase, by presence of children in the household, October 2014
- Recommendations from in-store salespersons obtain more followers in tier two and three cities
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- Figure 47: Information sources of smartphone purchase, by city tier, October 2014
The Consumer – Importance of Brands in the Purchasing Process
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- Key points
- Brand of the handset is the most important
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- Figure 48: Importance of brands in the purchasing process, October 2014
- High income group value brands more…
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- Figure 49: Importance of brands in the purchasing process, by percentage of consumers saying this is important, by income, October 2014
- …as well as households with children
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- Figure 50: Importance of brands in the purchasing process, by presence of children in household, October 2014
- Women address more importance on brand of network operator
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- Figure 51: Importance of brands in the purchasing process, by percentage of consumers saying this is important, by gender and age, October 2014
The Consumer – Future Purchase Intentions of Smartphones
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- Key points
- Nine in 10 consumers plan to buy a new smartphone
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- Figure 52: Future purchase intentions of smartphones, October 2014
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- Figure 53: Future purchase intentions of smartphones, by demographics, October 2014
- What brand of smartphone are consumers planning to buy?
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- Figure 54: The ownership of smartphones and future purchase intentions of smartphones, by brand, October 2014
- What price of smartphone will consumers consider?
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- Figure 55: The ownership of smartphones and future purchase intentions of smartphones, by price, October 2014
- A sizeable number of low earners are also considering an upgrade to premium phones
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- Figure 56: Future purchase intentions of smartphones on price, by monthly personal income, October 2014
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- Figure 57: Demographic profile of people who have a personal income of RMB4,999 or below but would like to buy a phone worth RMB4,000 or above, October 2014
- What screen size will people consider?
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- Figure 58: The ownership of smartphones and future purchase intentions of smartphones, by screen size, October 2014
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- Figure 59: Future purchase intentions of smartphones, by screen size, October 2014
- Consumers in their forties are big fans of large-screen smartphones
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- Figure 60: Future purchase intentions of smartphones on screen size, by demographics, October 2014
The Consumer – Attitudes towards Mobile Phones
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- Key points
- Most consumers perceive no significance in product quality between international and domestic brands
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- Figure 61: Attitudes towards mobile phones – International versus domestic, October 2014
- Lower-income consumers are more supportive of local brands
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- Figure 62: Agreement with “Given the same price and configuration, I prefer buying domestic brand rather than an international brand”, by monthly personal income and city tier, October 2014
- Although ‘face’ comes into play, most people want to know what they are paying for
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- Figure 63: Attitudes towards mobile phones – Functional versus emotional, October 2014
- High income groups are more driven by the status factor
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- Figure 64: Attitudes towards mobile phones – Functional versus emotional, by income, October 2014
- Consumers may stay with your brand, but it doesn’t mean they haven’t thought about alternatives
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- Figure 65: Attitudes towards mobile phones – Brand importance, October 2014
- Collaboration with online retailers is a must given the purchasing potential on this channel
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- Figure 66: Attitudes towards mobile phones – Channel, October 2014
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- Figure 67: Attitudes towards mobile phones – Channel, by gender and age, October 2014
- One-hand hold phones are being sacrificed for large screen
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- Figure 68: Attitudes towards mobile phones – Size, October 2014
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- Figure 69: Attitudes towards mobile phones – Size, by gender and age, October 2014
Appendix – Market Size and Forecast
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- Figure 70: Mobile phone volume sales, China, 2009-19
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Appendix – The Consumer – Mobile Phone Ownership
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- Figure 71: Mobile phone ownership, October 2014
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- Figure 72: Most popular mobile phone ownership, by demographics, October 2014
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- Figure 73: Next most popular mobile phone ownership, by demographics, October 2014
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Appendix – The Consumer – Brands of Mobile Phone Owned
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- Figure 74: Brand of smartphones, October 2014
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- Figure 75: Most popular brand of smartphones, by demographics, October 2014
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- Figure 76: Next most popular brand of smartphones, by demographics, October 2014
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- Figure 77: Other brand of smartphones, by demographics, October 2014
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Appendix – The Consumer – Price Range of Mobile Phone Owned
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- Figure 78: Price of smartphones, October 2014
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- Figure 79: Price of smartphones, by demographics, October 2014
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- Figure 80: Price of smartphones, by demographics, October 2014
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- Figure 81: Price of smartphones, by demographics, October 2014 (continued)
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Appendix – The Consumer – Screen Size of Mobile Phone Owned
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- Figure 82: Screen size of smartphones, October 2014
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- Figure 83: Screen size of smartphones, by demographics, October 2014
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- Figure 84: Screen size of smartphones, by demographics, October 2014 (continued)
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Appendix – The Consumer – Information Sources of Smartphone Purchase
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- Figure 85: Information sources of smartphone purchase, October 2014
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- Figure 86: Most popular information sources of smartphone purchase, by demographics, October 2014
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- Figure 87: Next most popular information sources of smartphone purchase, by demographics, October 2014
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- Figure 88: Other information sources of smartphone purchase, by demographics, October 2014
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Appendix – The Consumer – Importance of Brands in the Purchasing Process
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- Figure 89: Importance of brands in the purchasing process, October 2014
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- Figure 90: Importance of brands in the purchasing process – The brand of the handset manufacturer, by demographics, October 2014
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- Figure 91: Importance of brands in the purchasing process – The brand of the operating system on the phone, by demographics, October 2014
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- Figure 92: Importance of brands in the purchasing process – The model of the handset, by demographics, October 2014
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- Figure 93: Importance of brands in the purchasing process – The brand of the mobile network operator, by demographics, October 2014
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Appendix – The Consumer – Future Purchase Intentions of Smartphones
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- Figure 94: Future purchase intentions of smartphones, October 2014
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- Figure 95: Future purchase intentions of smartphones, by demographics, October 2014
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- Figure 96: Future purchase intentions of smartphones, by brand, October 2014
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- Figure 97: Most popular future purchase intentions of smartphones, by brand, by demographics, October 2014
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- Figure 98: Next most popular future purchase intentions of smartphones, by brand, by demographics, October 2014
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- Figure 99: Other future purchase intentions of smartphones, by brand, by demographics, October 2014
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- Figure 100: Future purchase intentions of smartphones, by price, October 2014
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- Figure 101: Future purchase intentions of smartphones, by price, by demographics, October 2014
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- Figure 102: Future purchase intentions of smartphones, by price, by demographics, October 2014 (continued)
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- Figure 103: Future purchase intentions of smartphones, by price, by demographics, October 2014 (continued)
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- Figure 104: Future purchase intentions of smartphones, by screen size, October 2014
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- Figure 105: Future purchase intentions of smartphones, by screen size, by demographics, October 2014
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- Figure 106: Future purchase intentions of smartphones, by screen size, by demographics, October 2014 (continued)
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Appendix – The Consumer – Attitudes towards Mobile Phones
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- Figure 107: Attitudes towards mobile phones, October 2014
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- Figure 108: Attitudes towards mobile phones – International versus domestic, by demographics, October 2014
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- Figure 109: Attitudes towards mobile phones – Functional versus emotional, by demographics, October 2014
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- Figure 110: Attitudes towards mobile phones – Channel, by demographics, October 2014
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- Figure 111: Attitudes towards mobile phones – Brand switching, by demographics, October 2014
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- Figure 112: Attitudes towards mobile phones – Innovation, by demographics, October 2014
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- Figure 113: Attitudes towards mobile phones – Size, by demographics, October 2014
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Further Analysis – Consumer Profile for Potential Upgrading Mobile Phone Buyers
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- Figure 114: Demographic profile of people who have a personal income of RMB4,999 or below but would like to buy a phone worth RMB4,000 or above, October 2014
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Further Analysis – Segmentation by Screen Size Preference
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- Figure 115: Demographic profile of smartphone user groups based on screen size, October 2014
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