Chinese smartphone makers look beyond ‘saturated’ China market - SupChina

Chinese smartphone makers look beyond ‘saturated’ China market

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Two of China’s largest smartphone companies are staking out new claims abroad, where they see greater growth opportunity than in the saturated Chinese market.

  • Xiaomi has announced that “India is becoming a bigger priority compared to China,” and accordingly will invest $1 billion in the country’s startups to “create an ecosystem of mobile apps for use on its smartphones,” the Financial Times reports (paywall).
  • A senior market analyst at IDC explained, “The China market is saturated, so now Xiaomi is turning its attention to India.” Another market analyst at iResearch pointed out that Indian smartphone users are especially price sensitive, so the low-cost Xiaomi phones perform well.
  • Huawei is instead aiming for the premium market, as it rolls out a Mate 10 Pro model at nearly $1,000 to compete with the iPhone X “in Europe, in the Middle East and elsewhere in Asia,” according to the New York Times (paywall).
  • Huawei is also “in talks with AT&T to offer the phones in the United States,” though the brand’s future there is uncertain given continuing scrutiny from U.S. authorities in charge of national security.

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Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company’s newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.