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Nokia is the top seller in China, Samsung is close behind; meanwhile HTC and Apple top U.S. ranks

For those awaiting with bated breath China passing the U.S. as the world's richest (e.g. highest GDP) nation, here's a sign of the times that may interest you.  China has unofficially passed the U.S. [press release] to become the world's largest smartphone market.

China has long seen much higher cell phone use than the U.S. -- understandable given that China has 1.34 billion people, compared to the U.S.'s 0.31 billion residents.  But until this year the U.S. was the world's biggest market for smartphones.

No more;  the U.S. is now only the second biggest market.  Strategy Analytics reports 23.9 million units (+58% versus Q2 2011) sold in China in Q3 2011, compared to 23.3 million units (-7% from Q2 2011) sold in the U.S. for the quarter.

Strategy Analytics researcher Tom Kang comments, "China's rapid growth has been driven by an increasing availability of smartphones in retail channels, aggressive subsidizing by operators of high-end models like the Apple iPhone, and an emerging wave of low-cost Android models from local Chinese brands such as ZTE."

In a sign of hope for Finnish-phonemaker Nokia Oyj. (HEL:NOK1V), the report indicates it to be the top seller of smartphones in China, with a 28.5% market share.  Close behind was South Korea's Samsung Electronics Comp., Ltd. (KS:005930) who owned 17.6% of the Chinese market.  

Approximately 54% (12.9 million phones) of smartphones sold in China were sold by "Other" (the publicly available form of the report did not include a breakdown of this information).  Past reports indicate that China-based ZTE Corp. (SHE:000063) may have shipped between 4 and 5 million smartphones in Q2 2011, mostly to China.  Huawei was listed as another top domestic smartphone producer in China.

Apple, Inc.'s (AAPL) iPhone may be a bit further behind, but it is fast gaining ground.  Currently its being held back largely by the fact that its available exclusively on China Unicom, Ltd. (SHA:6000050), China's second largest network.  China Unicom has about 170 million subscribers and primarily uses the GSM standard.

China Mobile, Ltd. (HKG:0941) is much bigger with 600 million subscribers, almost all using CDMA devices.  Apple is expected to soon launch its (relatively) new CDMA iPhone on China Mobile.  The launch should greatly boost Apple's market share in the world's biggest smartphone market.

iPhones and iPads have become status symbols among Chinese youth, ones which some would quite literally give an organ for.

Strategy Analytics states that in the U.S. Taiwan's HTC Corp. (TPE:2498) was king, with 24.0% of the market (5.6 million units), while Apple was in second with 20.6% (4.8 million units) of the market.  Samsung was presumably close behind, although its sales might have been a bit lower due to a tardy U.S. rollout of its flagship Galaxy S II smartphone.

The publicly available tables (attractive formatting, courtesy of DailyTech) are seen below:
China v. U.S.
The report was authored by Linda Sui.

Sources: BusinessWire, Strategy Analytics



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Plans are cheap
By masamasa on 11/23/2011 5:36:43 PM , Rating: 4
You pay for your phone up front over there and plans are super cheap. You're not locked in for a number of years, unlike the gougers in Canada. They seem to have a better system that benefits the consumer as opposed to ours, where we have one of, if not the highest rates in the world.

Add 1.3 billion people to the mix and pretty soon they will dwarf total users in any country.




RE: Plans are cheap
By Shig on 11/23/2011 6:48:53 PM , Rating: 2
It's really bad in the US too.


RE: Plans are cheap
By Samus on 11/24/2011 1:24:04 AM , Rating: 1
Considering most people in China are lucky to have three square meals a day and clean water, cell planes need to be <$10/month.


RE: Plans are cheap
By nocturne_81 on 11/24/2011 6:29:19 AM , Rating: 1
Seriously..?

<queue racist fanaticism and social ignorance>


RE: Plans are cheap
By Samus on 11/25/2011 4:42:41 PM , Rating: 2
You've obviously never been to rural China, where 85% of their population is, most of which is in poverty.


RE: Plans are cheap
By someguy123 on 11/25/2011 4:56:29 PM , Rating: 2
My family lives in a place you could consider rural China. It's not the hamptons but their quality of life is similar to that of people living in the denser metropolitan cities in the US. The architecture may be a bit slummy but otherwise it isn't bad. The air is terrible, though.

Unless mean the countryside/agricultural areas, which case, yes, rural areas are rural, though I don't see your point.


RE: Plans are cheap
By animedude on 12/22/2011 4:20:52 AM , Rating: 2
Don't you love people pulling statistic out of their ass.

No, people are not that poor as you think or like to think. I lived in rural village in China.


RE: Plans are cheap
By Xuhome on 11/24/2011 6:05:11 AM , Rating: 2
Not only plans are cheaper, their "smartphones" are cheaper too. Their nokia is about 5x cheaper than any smartphone.

They are considering theses nokias that have only facebook app and say this is an smartphone.


RE: Plans are cheap
By CSB on 11/24/2011 8:28:45 AM , Rating: 4
The reason the article doesn't mention plans, is not because their plans are cheaper, it is because they don't have plans over there. You buy a phone from a phone store, and have the sim card charged at the phone service store or street vendor. When you have used up all the time, (usually 30 to 60 days) you get the card charged by another vendor. The "Plans" you speak of are a purely North American Marketing invention.... that we all seem to have bought into as necessary. If you have ever seen the system work in China, you know the "Plans" are absolutely not necessary.


RE: Plans are cheap
By euler007 on 11/24/2011 8:00:43 PM , Rating: 2
The article seems to contradict you, the subsidizing of the high-end models is probably tied to service contracts.


Big Deal
By lsantiago77 on 11/24/2011 8:58:28 AM , Rating: 2
everybody is talking about China surpassing the US in everything but what they dont mention is that people in china make about 140 dollars a month while on average in the US make at least 1400 a month. so it will take a very very long time before china surpasses the US in everything. the GDP doesnt mean anything when the people there still only make 140 a month which is almost a day's worth of work for most people here in the US




RE: Big Deal
By AnnihilatorX on 11/24/2011 9:49:27 AM , Rating: 3
And your point is?
China is a country full of low class citizens, earning 10 times less, in a backward society and it will never reach the rich, prosper and affluent US?

That's not the point. It's not about competition or surpassing the US. This is just showing with Chinese population in the billions getting richer, there is a fast growing market full of potential for tech products.

Plus, average earning means nothing. China social class division is larger than the average developed country. Compound this with the population, yes you have like 90% poor people, but even the top 10% affluent has enough purchasing power to rival US and influence the direction of investment opportunities like this.


RE: Big Deal
By cruisin3style on 11/26/2011 2:32:40 PM , Rating: 2
I'm no expert on the rich in China but it seems like the richest ~134 million people in a poorer country won't match the US' 300+ million population purchasing power

now maybe in a few years...


Homer Simpson
By Omega215D on 11/23/2011 4:44:04 PM , Rating: 5
"Big deal. By the time Bart's 18 we're gonna control the world... We're China right?"




Not a big surprise
By ianweck on 11/23/11, Rating: 0
RE: Not a big surprise
By nocturne_81 on 11/24/2011 6:31:22 AM , Rating: 1
A nation with 3 times our population, steadily approaching our GDP? I for one am happy -- time to do away with this 'US/us againt the World' bs and wake up to the world we live in.


RE: Not a big surprise
By bupkus on 11/24/2011 2:37:14 PM , Rating: 2
A world lead by the Chinese government is a very scary proposition.


Smartphone = dumb users
By bupkus on 11/24/2011 2:35:42 PM , Rating: 2
In this case I'm using the "=" as a "yields" sign.

You either believe or you don't.




Queue...
By gwem557 on 11/23/11, Rating: 0
RE: Queue...
By Tony Swash on 11/24/11, Rating: -1
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins














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