We live in a generation ruled by smartphones and smart gadgets. We live and breathe the Internet every single day of our lives. You can hardly see anyone who hasn’t been bitten by social media just yet. From the young to the old, we all likely have an existing social media account and dedicate time for it almost every day to stay updated on the trending news and featured stories in the Internet of Things.
Wherever you are in the world, you’d likely see people obsessed with their smartphones and smart gadgets. It’s a given. They tinker with it every day and can’t live without it. It actually is an understatement considering how hooked almost everyone are with it. Apple may have introduced this smart technology to the world but many companies have now joined in on the bandwagon and have released their own versions of smartphones that are supposed to equal the sophistication of a an iOS smartphone or provide the flexibility and mass appeal of its Android version.
Huawei, the Chinese smartphone maker, is closing in on Apple Inc. (AAPL) and Samsung Electronics (SSNFL) in the smartphone market, narrowing the gap in sales during the first quarter of this year.
That’s according to research firm Gartner, which is out with a new report looking at sales of mobile phones for the first three months of 2017. While Samsung took back the top spot with unit shipments of 78.7 million and Apple was in second with close to 52 million units shipped, Huawei was growing closer with 34.2 million units shipped, controlling 9% of the market. That compares to 8.3% share for Huawei in the year-ago first quarter. Samsung holds a 20.7% market share while Apple is at 13.7%, according to the research firm.
“The top three Chinese smartphone manufacturers are driving sales with their competitively priced, high quality smartphones equipped with innovative features,” said Anshul Gupta, research director at Gartner, in a press release introducing the research. “Furthermore, aggressive marketing and sales promotion have further helped these brands to take share from other brands in markets such as India, Indonesia and Thailand.”
There is still continued growth in the sales of smartphone units all over the globe. People these days are looking for a smart gadget that offer various features that fit their changing lifestyle, something only a smart device can offer. Even the older population own a smart gadget too mainly to stay connected with family and close friends but many of them aren’t willing to spend a fortune unlike their younger counterparts. Hence, Chinese smartphones are the excellent choice because they offer the same features at a fraction of the price. Many people are also noticing how these Chinese counterparts are almost at par with the Western originals, hence the increase in sales in Chinese smartphone units.
Apple and Samsung are fast losing share in the smartphone market to a group of Chinese upstart rivals that now account for nearly a quarter of all global sales.
New figures from Gartner, the research group, suggest that to maintain growth Apple and Samsung are having to rely on replacement sales to existing customers in mature markets, as new users in emerging markets turn to cheaper Chinese rivals.
Gartner research director Anshul Gupta said consumers in China and emerging markets in the Asia-Pacific no longer saw the need to spend $US800 ($1000) on an iPhone now that there were high-quality alternatives available at less than half the price.
“For Apple it’s no longer about targeting first-time, entry-level customers, it’s about capturing the replacement market. The trick for them will be in finding ways to keep users of the iOS operating system tied to Apple,” he said.
Despite the continued growth in the smartphone industry, there is little growth on the two biggest names in this sector – Apple and Samsung. Chinese competitors are proving to be a big hurdle to their continued dominance in the industry as people are wiser now and would not just purchase an item simply because of its brand. For years now, we have all been witness to the steady rise of the Chinese superpower. They are the second largest and most powerful economy in the world next to the United States and most manufacturing firms have its roots in China. No wonder that most of the stuffs we buy have that tiny label in it that says, “Made in China”.
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