Chinese smartphone vendors outpace market

IDCApple and Samsung, beware! Chinese smartphone vendors are hot on your heels. According to IDC, a wide range of Chinese OEMs more than outpaced the market in Q2, with Huawei nearly doubling its shipment from a year ago, followed by Lenovo.

Huawei’s growth is spurred by 4G LTE pick up, particularly in China, as all three national carriers subsidised 4G handsets to encourage consumers to upgrade from 3G. Outside of China, large volumes of its lower-cost Y series fueled growth across most regions. The company continues to focus on broadening its global reach and the Q2 results show that the momentum is undoubtedly there.

Lenovo had a record quarter in China despite tremendous pressure from local brands. During the quarter, Lenovo saw increased success from the A788T and the 3G A388T. While its Motorola acquisition is undergoing approval, Lenovo continued to gain traction in international markets. Though less than five percent of Lenovo’s shipments were registered outside of China in Q2 2013, this share nearly tripled this Q2, with emerging markets, particularly BRIC countries, picking up the largest volumes.

“As the death of the feature phone approaches more rapidly than before, it is the Chinese vendors that are ready to usher emerging market consumers into smartphones. The offer of smartphones at a much better value than the top global players but with a stronger build quality and larger scale than local competitors gives these vendors a precarious competitive advantage,” said Melissa Chau, Senior Research Manager of IDC’sWorldwide Quarterly Mobile Phone Tracker.

The worldwide smartphone market grew 23.1 percent year over year in Q2, establishing a new single quarter record of 295.3 million shipment. Following a very strong Q1, the market grew 2.6 percent sequentially, fuelled by ongoing demand for mobile computing and an abundance of low-cost smartphones. Q2 shipments were in line with IDC’s forecast and all expectations are that the market will continue apace in the second half of the year and surpassing 300 million units for the first time ever in a single quarter in Q3.

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