Chinese Handset Vendors Advancing in Mobile Content and Services

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According to Strategy Analytics' latest smartphone market data, 5 out of the top 10 smartphone vendors by shipment in Q1 2014 are Chinese. However, the leading Chinese vendors are not satisfied with just being on the shipment leaderboard.

In its latest report, Strategy Analytics' looks into what it calls the leading Chinese vendors' commendable progress in the mobile content and service, as a means to attain more ecosystem orchestrating power.

"One of the things that have impressed us the most is the speed at which the Chinese vendors, especially the four featured in this analysis, Lenovo, Huawei, ZTE and Xiaomi, have expanded their footprints in the mobile content and service domains," said David MacQueen, Executive Director, Apps and Media at Strategy Analytics. "For example, Huawei has already built a catalog of 1 million apps in its app store. This is all the more impressive considering that companies like Huawei started from a much lower starting point in apps and have been far from being as vocal as a global heavyweight in promoting its own developer program, something the company may want to do more of in the future."

"With the ambition level raised higher in the overseas markets, the Chinese vendors may find the content and service markets much harder to crack than the devices markets. Particularly as the partnerships they have in place with content providers in China, where the Internet market is rather insulated due to social, cultural and regulatory reasons, are not easily expanded overseas," said Wei Shi, Wireless Media Strategies analyst at Strategy Analytics. "The unchartered waters may prove challenging, but it will be a challenge worth taking if the Chinese vendors are seriously aiming at going beyond hardware shipping and manufacturing."

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Tags: China 

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