China smartphone shipments shrink after 2 years of growth - IDC

BEIJING Thu Feb 13, 2014 2:14pm IST

Women use their mobile phones to take pictures of the snow at Lujiazui financial district of Pudong, in Shanghai February 10, 2014. REUTERS/Aly Song

Women use their mobile phones to take pictures of the snow at Lujiazui financial district of Pudong, in Shanghai February 10, 2014.

Credit: Reuters/Aly Song

Related Topics

Stocks

   

BEIJING (Reuters) - The explosive growth of smartphone sales in China, the world's biggest smartphone market, has come to a halt as unit shipments declined for the first time in more than two years, data firm IDC said on Thursday.

Shipments of smartphones in China fell 4.3 percent to 90.8 million in the fourth quarter from 94.8 million units in the previous one, the first drop-off since the second quarter of 2011, according to IDC.

"The world has increasingly looked to China as the powerhouse to propel the world's smartphone growth and this is the first hiccup we've seen in an otherwise stellar growth path," said Melissa Chau, a senior research manager with IDC.

"We are now starting to see a market that is becoming less about capturing the low-hanging fruit of first time smartphone users and moving into the more laborious process of convincing existing users why they should upgrade to this year's model."

Apple Inc's (AAPL.O) deal with China Mobile Ltd (0941.HK) and the country's rollout of high-speed 4G mobile networks will encourage adoption of 4G-compatible smartphones and help shore-up growth, according to IDC.

Growth however, is shifting to other emerging markets, IDC said, as China's smartphone market becomes increasingly competitive.

Chinese smartphone manufacturers like Lenovo Group Ltd (0992.HK), which acquired Google Inc's (GOOG.O) Motorola handset unit for $2.9 billion last month, Huawei Technologies Co, ZTE Corp 000063.SZ (0763.HK) and Xiaomi Tech are already chasing overseas expansion.

(Reporting by Paul Carsten; Editing by Matt Driskill)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage