China To Leapfrog USA To Become World’s Biggest Smartphone Market: [REPORT]

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Smartphone shipments are  growing in emerging market with dizzying pace worldwide. Now, emerging markets have become the driven sources for the development of Smartphone market worldwide. A recent report from a research analysis firm  IDC has revealed that China is going to be the world largest Smartphone market this year followed by US. Despite of China, other  emerging market such as India and Brazil is also expected to booming this year. The research analysis firm has also revealed that India and China will be among the top Smartphone market by 2016.

IDC’s senior research analyst of Mobile Phone Technology and Trend Team—Ramon Llama—said, “Due to their sheer size, strong demand, and healthy replacement rates, emerging markets are quickly becoming the engines of the worldwide Smartphone market. Users in emerging markets seek more than simple voice telephony, and smartphones offer the ideal platform for mobile entertainment, social networking, and business usage as seen in developed markets.”

Undoubtedly, smartphone market share in some of the matured market such as Japan, the UK, and US are still growing but the growth rate of these markets are somewhat smaller than emerging markets like India and Brazil. There’s still numbers of challenges in emerging market to adopt Smartphone. At MWC this year, number of industry’s  CEO emphasized on low price Smartphone which should be as low as $50 in order to spur widespread adoption. Smartphone in emerging markets are seeking for huge investment, and contemporary, data plans provided by different carriers in this market are still high.

Considering to Indian market, Smartphone’s penetration in urban is quite high. In India, carriers are aggressively trying to reduce 3G tariffs in order to have greater 4G penetration. A number of local giants such as Micromax, Spice, Karbonn and Lava have already succeeded to grab a portion of Smartphone market last year, however, a majority of market are still dominated by global giants like Nokia, Samsung and HTC . These global giant are still seeking to invest a lot due to increasing demand of Smartphone in this market.

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It’s expected that China will take a slim lead to US by this year, and it’s also speculated that the gap will increase in upcoming years.  Low-price Android based Smartphones ( less than $200) have driven the growth of Smartphone in the country. Emerging domestic vendors such as Huawei and ZTE has played an important role to ramp up the penetration of Smartphone in the country.

The growing economy and low inflationary pressure has enforced Brazil to adopt Smartphone with galloping swift. Presently, mobile phone subscribers in the country are more than the country’s total populations.

By 2016, India will become third biggest Smartphone market, and UK will slip to fifth notch. China will dominate the Smartphone market worldwide with 20.2% by 2016, followed by US with 15.3%. India and Brazil will have 9.35% and 4.7% market share respectively by 2016.

Source: IDC

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