Analyst firm Canalys comes with an interesting report forecast, saying that by 2015, more than 40% of smartphones in China will be price below $200. China already account huge, a more than a third of the global increase in smartphone shipment volumes in 2012. The recent entry into the smart phone market of leading Internet companies, such as Alibaba and Baidu, is also expected to increase competition at the low end.
Chinese mobile operators publicly outlined new minimum hardware specifications for smart phone procurement; these are one of the key reasons behind prices being driven down further. Local Internet companies in China are also attempting to gain more prominence in the mobile space. The domestic brands name Qihoo 360 (one of the largest security software vendors), NetEase (one of the largest Internet portals) and Shanda Interactive (a leading online games operator) had seen working hard enough in recent time to make more big in the country in the smartphone market
Canalys expects international vendors to remain strong at the high end of the market though. Vendors such as Samsung, Apple and HTC should continue to dominate in the space above RMB2,500 ($400). Leading local tier-one brands, such as Huawei and ZTE, are diversifying beyond the entry level by launching a number of high-profile, flagship smart phones, but it will require significant marketing and brand investment to deliver a significant return and this will take a long time.