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China smartphone market: Sony Mobile, LG, Motorola in serious competition, say Taiwan makers

Daniel Shen, Taipei; Adam Hwang, DIGITIMES [Monday 27 May 2013]

In the China smartphone market, Samsung Electronics has performed well among international vendors while Sony Mobile Communications, LG Electronics and Motorola Mobility have fallen into laborious competition, according to Taiwan-based supply chain makers.

According to Strategy Analytics, Samsung shipped over 10 million smartphones in the China market to become the largest vendor in the first quarter of 2013, China-based vendors Huawei Device, Lenovo, Coolpad and ZTE ranked second to fifth respectively and Apple was the sixth largest one.

Sony Mobile has set up a R&D center in China and plans to strengthen marketing of smartphones there, the company said. While most China-based vendors compete by launching inexpensive entry-level smartphones, Sony Mobile will not compete in that market segment and will focus on high-end models, the company pointed out. As smartphone competition is shifting from hardware to software and service, Sony Mobile has the advantage of supporting resources from Sony Group and therefore takes a good chance of rebound in the China market, the company indicated.

LG saw its smartphone market share in China during the first quarter fall to only 0.1%, Taiwan-based supply chain makers indicated. LG is supposed to build up market status by flagship smartphones in China and then extend product lines to mid-range and entry-level models, the sources pointed out.

Motorola Mobility has laid off 1,800 employees in China and has not launched new smartphones in the market for a while. Google may withdraw Motorola Mobility from the China market in the future, the sources indicated.

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