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Chinese mobile phones enter into international market at an affordable price

According to German media, Chinese mobile phone manufacturers have focused on the local market so far, and now they are starting to make international big brands too bad. Samsung and Apple must be careful.

China's mobile phone shipments increase

The newlyweds danced around the angels. Behind a funnel-shaped tree is a castle that is confusing with Disney movies. Next to it, a Transformer is smoking a cigarette. According to the German "Frankfurt Report" website reported on March 2, this confusing model world is in front of the booth of China's communications equipment manufacturer ZTE Corporation. Around this fantasy world is the new ZTE smartphone with low price. The details of this miniature world are the favorite subjects of the World Mobile Communications Conference visitors who are in the end of the booth. The world's largest mobile communication show ended in Barcelona on March 2.

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According to the report, the Chinese have many such gadgets, which are particularly novel for Western Europeans. OPPO, which is only 400 meters away, a manufacturer that is barely known locally, has set up a giant booth that rivals Samsung, Intel or IBM. There is also a miniature world, which is not as gorgeous and colorful as ZTE, but simple white. With a five-times zoom camera, visitors can clearly see the details on the doll's tie. OPPO here mainly shows a smartphone with a 16 megapixel camera designed for the self-timer. At the same time, it also launched a mobile phone for Asian customers to make the self-timer look more beautiful. In just seven steps, you can turn from a tight show visitors to a handsome boyfriend in Barbie World.

Does anyone need something like this? The answer is getting more and more obvious: OPPO sold just 2.67 million phones in the fourth quarter of last year. In any case, this is already one-third of Apple’s sales during the same period. Huawei's sales even exceeded 40 million units. In particular, from the change in market share, one can see that the dominant position of the Chinese is constantly increasing. Samsung and Apple, the two leading players in the market, had to accept the reality of their sales data falling last year. Samsung's market share dropped from 22.5% to 20.5%, and Apple dropped from 15.9% to 14.4%. The situation from competitors in the Far East is completely different, and they can be happy for the obvious growth. The market share of the third-year Huawei in the global smartphone industry rose from 7.3% to 8.9%. The fourth-ranked OPPO share reached 5.7% last year – more than double the 2.8% in 2015.

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Not only satisfied with the domestic market

For this apparent upward trend, analysts have a simple explanation. “So far, the energy of Chinese manufacturers has been concentrated in the domestic market,” said Anshuer Gupta, an analyst at Gartner Consulting. Right now they rely on strength to compete in the international market. For example, Huawei currently sells half of its smartphones abroad. At the same time that the global high-end machines (mobile phones with prices above RMB 5,000) are stagnant, consumers are more likely to want cheaper phones. Chinese suppliers responded to their needs.

According to the report, this is also because the price is no longer necessarily cheap. The Chinese have already caught up with the quality. "In terms of technology and innovation, Chinese companies and Samsung and other industry leaders are very close," said Huo Jinjie, president of International Data Corporation's China region. China's fast-growing online services require more powerful devices. “Many local suppliers use this opportunity to get rid of the imitator's image.”

The most active in this regard is the Guangdong OPPO. For the company's mobile phones, the fast charging function, cameras that can still take pictures in low light conditions, and 6G storage space are now standard. Even high-end machines have to be defeated in some respects. For example, it is impossible to complete a quick charge on the iPhone.

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Big-name suppliers may face storms, but this is a good thing for consumers. It can be seen at the Mobile World Congress that even Haier, which is familiar with washing machines, refrigerators or dishwashers in Europe, is further advancing in the low-cost smartphone market. Haier has launched three new machines for the European market in Barcelona. A British man in a suit is taking photos of Haier's Leisure L7 mobile phone with his Samsung mobile phone in front of the booth. "As long as 200 euros (about 1451 yuan - this net note), you can try it as a second phone," he said.