Chinese Smartphone Market May See New Leader; Lenovo-Samsung Market Share Gap Less Than 1% in 3Q12

  Chinese Smartphone Market May See New Leader; Lenovo-Samsung Market Share
  Gap Less Than 1% in 3Q12

Business Wire

TAIPEI, Taiwan -- October 29, 2012

According to TrendForce, with component cost continually decreasing, many
mobile phone makers are developing entry to mid-level smartphones in an effort
to increase market share. Smartphone shipments are forecast to exceed 650M
units in 2012, more than 40% growth compared to 460M units shipped in 2011.

Looking towards 2013, as 3G network infrastructure gradually becomes more
widespread and mobile phone prices are dropping to market-friendly levels,
TrendForce estimates global smartphone shipments will exceed 830M units in
2013, a nearly 30% increase. Worth noting, Chinese brands are expected to see
especially strong smartphone shipments, with 50% growth projected for next
year, more than the global average.

Traditionally, smartphones have sported price tags of at least 500 USD.
However, as component cost has decreased, 100 USD smartphones emerged on the
market in 2012, with Chinese smartphone brands and white-box manufacturers
introducing the lowest-priced devices. TrendForce believes such low pricing is
the main reason Chinese brands are able to show such strong growth against
competition from major manufacturers. Chinese telecoms provide relatively low
smartphone subsidies; most high-end devices carry a steep price tag even after
signing a contract (prices fall in the 3000 to 5000 RMB range without a
contract). The monthly cost of a contract plan is around 4.5 times that of a
non-contract plan, which has pushed consumers with limited budgets towards the
purchase of a non-contract device in the 800 to 1200 RMB range, creating a
significant market opportunity for Chinese smartphone brands.

TrendForce estimates Chinese smartphone shipments will exceed 200M units in
2012, nearly 30% of the global shipment forecast. Of the Chinese brands, ZTE
and Huawei’s combined smartphone shipments will reach 65M units in 2012,
accounting for 30% of total shipment volume for Chinese smartphone makers. As
for Lenovo, the manufacturer has only been in the smartphone market since the
second quarter of 2012. After only six months on the market, with a solid
reputation and a clearly defined price strategy, Lenovo’s third quarter
smartphone shipment volume has surpassed that of ZTE and Huawei, making the
newcomer China’s leading smartphone brand. With 14.7% of the market, Lenovo is
close behind Samsung, whose market share is currently at 15.5%.

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Jasmine Huang, +886-2-7702-6888, ext. 680
Mobile: +886-930-907-304
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