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Chinese phone firms still behind: expert

2013-06-08 14:08 Global Times     Web Editor: qindexing comment

Shenzhen-based technology giant Huawei and other rising Chinese handset makers will find it hard to be more competitive with top smartphone brands Apple and Samsung over the next few years, a research vice president at IT consultancy Gartner told the Global Times Friday.

Chinese brands like Huawei, ZTE and Lenovo want to play a more international role and become recognized as top-tier vendors, Carolina Milanesi, research vice president for consumer devices at Gartner, said in an interview with the Global Times in Beijing.

In the first quarter, Huawei took the No.4 spot in the global smartphone market with a 4.4 percent share in terms of sales, while rival domestic firm ZTE held fifth position with a 3.8 percent market share, according to the latest figures from the US-based research firm.

It's an indication of Chinese brands' newfound strength, but local brands are still a long way from matching the top companies in terms of popularity and reach, according to Milanesi.

The top handset manufacturers, especially Apple, have been able to create a whole ecosystem that helps to sell other devices such as iPad tablet computers, to offset a slowdown in the replacement cycle, she noted.

Samsung, with its flagship Galaxy lineup, has also been making efforts to interest consumers in the rest of its product portfolio.

But the same strategy would be difficult to follow for local brands, which would face challenges in extending their selling power to devices such as tablets and PCs, Milanesi said.

The country's first- and second-tier cities are expected to see a further slowdown in the replacement rate of electronic devices. Consumers "are not upgrading because they expect the prices to continue to drop," she noted.

In addition, Milanesi predicted a cheaper iPhone, priced around $200-$250, may come to the Chinese market by the end of the year.

Speculation about Apple's launch of a cheaper phone has been growing over the past year.

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