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Prospect for a Leap Forward of Chinese Smart Phone Industry in the Global Market and its Implication

Author Kim, Jong-Ki Date 2014.05.15 Issue No 588

Chinese smartphone manufacturers whose number is the largest in the world, is rapidly chasing Korean smartphone makers by jumping to the 2nd place in terms of the global market share of smartphone.


The market share smartphone made by Chinese enterprises accounts for in the global market, expanded to 28% in two years from 7% in 2011, while the Chinese smartphone industry has taken the 1st place in terms of its market share in the Chinese market by increasing the share to 68% in 2013.


Although Chinese smartphone makers achieved such the sharp growth by depending on its domestic market which is the largest in the world. Its growth also stems from the manufacturing capability of the industry equipped with price competitiveness, stable parts supply system, telecommunication and synergy effect resulting from its combination with equipment·computer sector as well as governmental support. 


Chinese smartphone industry is highly Internalizing their smartphone parts as it is a primary source supplying smartphone parts, and is securing core technology and standard of mobile telecommunication such as TD-LTE, mainly led by Chinese government. As a result, it is rapidly growing. 


As a follower, Chinese smartphone industry is prospected to take the 1st place in terms of the global market share of its smartphone by 2016 considering its current growth rate and the outlook for production of smartphone made by Chinese smartphone makers.  



In order for Korean industry to respond to the Chinese smartphone industry which strives to catch up with Korean enterprises, and lead the smartphone market in the future, it is urgent to strengthen the strategy to differentiate the relevant technology and production.   


It is also necessary to reinforce a strategic investment made by public and private sectors in order to secure future competitiveness of the promising core parts industry and expand its export in preparation for the era of post smartization and hyper connected society.


As the overseas production of smartphone is on the rise, parts for smartphone is leading the entire export of smartphone. For this reason, it is necessary for Korea to pursue a strategy to increase the export of the parts which substitutes the export of finished goods.   


It is urgent to prepare a development strategy to lead the market and secure a core technology in the next-generation mobile device such as 5 generation mobile communication and wearable smart device which is demanded in the era of Internet of Thing.