Smartphone shipments to soar

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Smartphone shipments in China will hit 450 million in 2017, pushed up by aggressive tactics by local vendors and the advent of the highly anticipated fourth generation network, an industry report said on Wednesday.

Four Chinese manufacturers were ranked among the top five smartphone brands in the market at the end of June, taking more than 40 percent of the market share, said IDC, a US-based consultancy.

The shipment volume this year is set to reach 360 million, according to an IDC report.

The world's No 1 personal computer maker Lenovo Group also claimed the title of top local smartphone vendor, with a 12.6 percent market share in the second quarter, the report said.

The company's first quarter market share was 9.8 percent.

Chen Xudong, general manager of Lenovo China, said the company will launch more high-end products in the coming months to cement its leading position.

South Korea-based Samsung was the largest smartphone maker in the China market despite strong challenges from local brands. The company controlled 18.3 percent of the market share in the second quarter.

The market share of Apple has declined "dramatically", affected by sluggish sales of the iPhone 5, said James Yan, a senior analyst at IDC China.

"The company's performance is expected to remarkably improve with the launch of the iPhone 5S and iPhone 5C," he said.

However, Samsung and Apple may find difficulties expanding their user population in China after Lenovo and Huawei Technologies, the fifth largest maker, released high-end gadgets with faster chips and lower prices.

In the meantime, analysts noted local brands are more competitive at the lower end of the market, where customers are price sensitive and ask for smooth performances in the products.

Substantial shipments of low-end 3G smartphones priced below 800 yuan ($130) was the major reason powering the double-digit growth in the second quarter, IDC said.

Coolpad, a popular smartphone brand for students and young adults, took an 11 percent market share from lower-end users as of June, a surge of more than 20 percent year-on-year.

The issuance of 4G licenses in China is expected to add 120 million to smartphone shipments next year, IDC predicted.

Miao Wei, head of the Ministry of Industry and Information Technology, said on Tuesday the first 4G license is likely to be issued before December.

Questions:

1. What is the prediction for smartphone shipments in China?

2. How many Chinese manufacturers are ranked among the top five smartphone brands?

3. How much do they have in market share?

Answers:

1. They will hit 450 million by 2017.

2. 4.

3. More than 40 percent.

About the broadcaster:

Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is also fluent in Korean.