Domestic mobile phone makes a big counterattack

Investigators of the third quarter in 2014 on smart phone profit report shows, Apple is still monopolized by 86% of the smart phone industry profits, and though domestic mobile phone possesses a huge shipment, its profit share owns a little. Strategy Analytics released a report on global smart phone market in the third quarter, MIUI mobile phone shipment and market share are on the third top in the world, after Samsung and Apple.

Nokia is Microsoft received, Sony began brewing large layoffs, Samsung profit shrunk, foreign mobile phone giants in this year have to walk into the dilemma, the contrast is, domestic mobile phone brands such as millet (rolling wire), HUAWEI and other began to counter attack, not only in the low-end market grab share in the high-end market will continue to sell. However, investigators in 2014 in the third quarter smart phone profit report shows, apple is still monopolized by 86% of the smart phone industry profits, and domestic mobile phone although huge shipments, but the share of profits hard to hold a candle.

The former giants collapse

Two years ago, Motorola, NOKIA, SONY is the star in the global mobile phone market. However, things change a lot now, Motorola has not yet returned to the Chinese market after two disasters, Sony mobile phone announced to withdraw the Chinese market in a euphemistic way, Nokia will only appear as the low-end phones in the future.

Samsung has been the master in the mobile phone industry in recent years, but it also suffered a disaster in this year: It lost the position of Chinese largest manufacturers of smart phones. Samsung's third quarter results showed that the company operating profit and net profit fell to 60%, 49%. U.S. investment firm Canaccord Genuity released a report last week and showed that Samsung is expected to take a 18% share in the smart phone market, it has been the lowest since 2011.

Samsung also lost the Chinese and Indian largest share in the market. The report released by Canalys, Counterpoint shows that Samsung shares 12% in the Chinese market, ranking second, Millet ranked first with14% of shipments. In 2013, Samsung's market share in China is close to 20%, and now its market share has shrunk by nearly 50%

The picture of mobile phone test fixture：

Domestic mobile phone’s opportunity

It seems to bring a great opportunity for the development of domestic mobile phone. Reuters recently commented: ‘China's Millet Technology has become the world's third largest smart phone manufacturers. It is worth noticing that, in addition to Samsung, Apple, most of the mobile phones in the market are from China.’ Strategy Analytics released a report about global smart phone market in the third quarter shows that Millet mobile phone’s shipments and market share are ranked third in the world, following Samsung and Apple.

In China's mobile phone market, the high quality phones with over 4000 Yuan are very few. Apple's average price fell over 1000 Yuan, the average price of the Samsung high-quality models also fell by nearly 200 Yuan at the beginning of last year. In this regard, Market Research Analyst Zhang Xing believes that the change in the environment gives the domestic mobile phone opportunities. Perhaps in the consumer’s view, they will still choose Apple or Samsung's products with the same price. In addition to these small numbers of brands, there is no other choice for high quality phone, but the market is still there. So this is the spring for the domestic mobile phone".

It is worth mentioning that China has finally entered the 4G era since 2014. From the perspective of mobile phone manufacturers, domestic mobile phone is expected to become the biggest winner in the first year of 4G. Coolpad in May this year has sold more mobile phones than Samsung and Apple and become the first brand of 4G handset shipments. Coolpad is in the top-ten among the list, and domestic brands accounted 80%, that is the first reversal for Chinese mobile phone.

4G mobile phone test fixture:

Is it just blustering?

Apple beat all the opponents with 86% market shares in the third quarter. In addition to apple sand Samsung, it is reported in the third quarter that there was just one profitable smart phone manufacturer at the market, and that is LG. HTC and Blackberry was nearly zero, as for Motorola, it lost about 185 million dollars with a share of -2%, and Microsoft lost 341 million dollars with a share of -4%.

Apple and Samsung's total profit are more than 100%, but most of the mobile phone manufacturers are in a state of loss? It is clear that the domestic mobile phone’s profit is not so optimistic, including Levono, Millet and HUAWEI. Most of their smart phones are low-end products. One insider says ‘there is no profits except the cost, though the domestic phones has caused huge impact to Apple and Samsung, they are still far behind Apple and Samsung in profit.’

SINO, the market consulting research agent, released the latest data shows that the average price of domestic mobile phone is arising gradually from 879 Yuan in 2013 to 916 Yuan in 2014, particularly HUAWEI, it has increased about 400 Yuan.

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