Latest News:  

English>>Business

Chinese cell-phone firms struggle to make a profit

By He Wei (China Daily)

08:25, December 28, 2012

Lenovo Group Ltd smartphones displayed at a trade show in Beijing. By November, 70 percent of the handsets sold in China were manufactured by domestic companies. Wang Min / For China Daily

Local brands have grabbed a lion's share of China's cell- phone market but are struggling to make money, market insiders warned.

Industry officials estimate that smartphones will continue to batter the cell-phone market in the coming year, with the Android operating system consolidating its leading position.

Contract phones are tipped to lead the market as handset manufacturers forge closer ties with operators to boost sales.

As of November, 70 percent of handsets sold in China are manufactured by domestic companies, according to a study by Beijing-based Sino Market Research Ltd.

After South Korea's Samsung Group, which topped the list with 15.5 percent of the market share, the second- to fifth-most sold cell phones in China are homegrown brands: Lenovo, Coolpad, Huawei, and ZTE.

A similar ranking is in the smartphone hierarchy, with the Chinese consortium claiming a combined 40 percent of sales.

Samsung leads the smartphone field with 16.3 percent of the market, while Apple Inc's iPhones dipped to sixth with less than 5 percent of the market.

Meanwhile, Chinese firms are struggling to translate their sales success to profits.

Most domestic phone makers are running on zero margin or barely make a profit, said Xu Zhen, a telecommunications specialist with d1net.com, an information technology portal.


【1】 【2】 【3】

We recommend:

Riding on BJ-GZ high-speed railway

The spending of China's rich

More Chinese cities see home price rise

Santa is coming and China takes a lot more notice

Harbin-Dalian high-speed railway starts operation

Nanjing Yangtze Fourth Bridge to open

Email|Print|Comments(Editor:黄蓓蓓、梁军)

Related Reading

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Four warships of navy hold open day to public

  2. Frontier defense soldiers on patrol duty

  3. Winter storm hits eastern U.S.

  4. Your moment supports my whole life

  5. Harbor seals brace for coldness in icy water

  6. Top 10 economic events in 2012

  7. Gorgeous Ye Qing's new photo album

  8. Photos of the Day

Most Popular

Opinions

  1. Time to abandon obsession with theme parks
  2. No grand glory, but plenty to cheer about
  3. Optimism over China's economy surfaces
  4. Internet gaming: 'A winning gamble'
  5. People have right to know what chickens eat
  6. Catchwords in memory in 2012
  7. Why the young Chinese get physically weaker
  8. Why Discover China is popular in the West
  9. The laughter sounds too harsh
  10. Do not confuse Confucious with Santa Claus

What’s happening in China

Many parts of Jiangsu see snowfall

  1. 12 officials suspended over children deaths
  2. More non-governmental support to help needy
  3. China bans forced confessions in investigations
  4. School bus safety
  5. Chinese women prefer older men: Poll