Setting aside the Olympics, competition is heating up in mobile markets as China takes the lead this year in smartphone shipments. The latest report from Canalys shows that Chinese consumers are buying smartphones in droves and largely from domestic manufacturers, not international brands. China has a 27% share. The US has a 16% share.
If there is any chance that China is beginning to build on domestic consumption, the smartphone market would be a worthy place to start. While Samsung still holds the crown, the Korean giant is being drowned out by a series of Chinese manufacturers, including ZTE, Lenovo and Huawei. Domestic manufacturers represent 60% of the market share so far this year, with 25.6 million units shipped, a 518% growth year-on- year.
Most notable of all is that Android shipments represented 81% of smartphones shipped in Q2 2012 in China. With noticeably absent lines at Apple’s iPad launch in China this June, these numbers indicate a trend that should make Apple think twice about its strategy in China.