| Linux grabs 30% of China's fast-growing smartphone market |
Mar. 22, 2007
China consumed 15 million smartphones in 2006, up from 10 million units in 2005, resulting in more than doubling of smartphone revenues, according to Chinese market research firm CCID Consulting Company. Symbian controlled 63.2 percent of the market, followed by Linux (30.3 percent) and Windows Mobile (5.4 percent).
Overall Chinese smartphone revenues for 2006 came in at RMB40 billion (approx. $5.1 billion) -- more than double 2005 figures, despite the average selling price dropping from RMB3,176 ($411) to RMB2,450 ($317), CCID said. Additionally, more than 120 smartphone models were available, up from 87 in 2005 and 30 in 2003, when smartphones were "still a novelty in the market," according to CCID.
Chinese smartphone market growth
(Source: CCID Consulting, Jan. 07)
| Price Band | 2006Q1 | 2006Q2 | 2006Q3 |
|---|
| Under RMB2000 (< ~$260) | 32.5% | 34.2% | 36.2% | | RMB 2001-3000 (~$260 - $388) | 40.0% | 43.2% | 36.6% | | RMB 3001-4000(~$388 - $517) | 16.3% | 19.0% | 24.2% | | RMB 4001-5000 (~$517 - $647) | 8.9% | 1.8% | 1.2% | | RMB 5001-6000 (~$647 - $777) | 1.3% | 0.7% | 1.0% | | Over RMB 6001 (> ~$777) | 1.0% | 1.1% | 1.0% |
Chinese market's smartphone pricepoints
(Source: CCID Consulting, Jan. 07)
CCID described Nokia's and Symbian's position in the smartphone market as "dominant," despite the fact that Microsoft "stepped up its efforts" to promote Windows Mobile, which comes in Pocket PC and Smartphone versions. Microsoft "widely cooperated with terminal makers and many middle-stream and downstream software developers," but was ultimately unable to greatly increase its share of the market, despite convincing more terminal makers to join its camp, CCID said.
Motorola, meanwhile, maintained its smartphone sales levels, enabling Linux to continue its position as the second largest mobile phone OS, according to CCID.
China smartphone market mobile phone OS marketshare
(Source: CCID Consulting, Jan. 07)
CCID figures suggest that together, Nokia and Motorola controlled 90 percent of the smartphone market in China. As a result, other vendors are turning their focus toward market segments where they can "bring their advantages into better play," CCID said. Areas for potential differentiation include GPS navigation, push-mail, and information security.
A need for greater differentiation could favor Linux, due to its open nature, modularity, and its unrestricted capacity for modification. One example of a highly differentiated Chinese smartphone is the just-launched Tranzda PM328, which integrates a GPS receiver with voice navigation functionality. Additionally, Linux smartphone stack vendor A La Mobile told LinuxDevices earlier this month that it has taken a strategic shift toward vertical markets.
Meanwhile, the U.S. mobile phone market is also consolidating, according to a Gartner report from earlier this month that suggested that the six largest phone vendors control 86 percent of the market, up from 81 percent in 2005.
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