2020
0
China Mobile Phones and Network Providers Market Report 2020
2020-10-20T04:01:29+01:00
OX990416
3695
126326
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Report
en_GB
“China is likely to lead the 5G revenue uplift. Consumer upgrade intentions are strong, focusing on key features such as smoother operating experiences, 5G enablement, and higher quality. As for…

China Mobile Phones and Network Providers Market Report 2020

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the Mobile Phones and Network Providers – China market including the behaviours, preferences and habits of the consumer.

The mobile phone market in China continued to see slow growth in volume sales in 2016, although value sales increased at a higher pace. Network operators are undergoing a network transformation plan that aims to integrate technologies such as AI, IoT, big data, cloud and edge computing into 5G networks, in order to combine connectivity with digital services and provide customised service capabilities.

Quickly Understand

  • The future outlook for smartphone design?
  • Take a closer look why Huawei outperfomed Apple?
  • Forward looking and the key insights on the 5G network?
  • A diverse and active entertainment partnership that drives consumer adoption?
  • Which competitors are expected to take part of the medium-high end market?

Covered in this report

Huawei,Vivo,OPPO,Xiaomi,Apple etc

The mobile phone market covers 2G, 3G, 4G, 5G and other mobile phone handsets

Expert analysis from a specialist in the field

Written by Xinyuan Xu, a leading analyst in the Technology sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

China is likely to lead the 5G revenue uplift. Consumer upgrade intentions are strong, focusing on key features such as smoother operating experiences, 5G enablement, and higher quality. As for data plan upgrades, operators will focus more on expanding the 5G use scene for consumers with more data plans and additional talk minutes.
Xinyuan Xu
Technology Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Covered in this Report
  2. Executive Summary

    • The market
      • Figure 1: Short, medium and long-term impact of COVID-19 on the technology and communication sector
    • Smartphone regains positive growth rate amidst COVID-19 impact
      • Figure 2: China retail sales of smartphones, 2014-20 (fore)
    • 4G dominates but 5G will ramp up in 2021
    • The benefits of smartphones are reaching further than ever
    • Companies and brands
    • Huawei tops consumer ownership
    • Xiaomi adjusting towards a more premium model
    • Innovations in the smartphone market
    • The consumer
    • Market competition has turned into five parties
      • Figure 3: Current smartphone brand owned 2015, 2016 and 2020
    • Lacking innovation sets consumers back
      • Figure 4: Frequency of smartphone upgrades, June 2020
    • Smartphone customers are unanimous in wanting functionality
      • Figure 5: New features for smartphone upgrade, June 2020
    • Budget may come as a hindering factor for 5G mobile plan upgrades
      • Figure 6: Monthly spending on mobile phone plans, by household income, June 2020
    • Data roaming considered an essential service
      • Figure 7: Factors considered when switching operators, June 2020
    • Apple ends consumer desire towards 5G in Q4
      • Figure 8: Attitude towards the 5G network, agrees to there are enough choices of 5G smartphones in the market, and agrees to mobile apps for 5G networks are not enough, by smartphone brand owned, June 2020
    • Leverage lower-priced 5G ready smartphones to boost upgrades
      • Figure 9: Attitude towards 5G, agrees to 5G ready smartphones are too expensive, by smartphone upgrade timing, June 2020
    • What we think
  3. Issues and Insights

    • Forward looking on the 5G network
    • The facts
    • The implications
    • A diverse and active entertainment partnership drives consumer adoption
    • The facts
    • The implications
    • Future outlook for smartphone design
    • The facts
    • The implications
  4. The Market – What You Need to Know

    • China Mobile has the biggest consumer volume
    • COVID-19 shocks smartphone demand for 2020, yet home network services increase in sales
    • Smartphone ownership at peak level leaving only room for upgrade and no penetration
    • Need for new usage scenario going forward
    • 6G an increasing buzz word
  5. Market Size and Forecast

    • Slowest growth in 2019 dragged down by smartphone sales
      • Figure 10: China retail sales of smartphones, 2014-20 (fore)
      • Figure 11: Total China retail sales and forecast of mobile phones, at inflation-adjusted prices, 2015-25
  6. Market Factors

    • Disruptive capabilities of 5G pave the way for new innovative applications
      • Figure 12: High speed and low latency of 5G fuels demand of new services
    • 4G mobile service users sustained from 2019
      • Figure 13: Total users and 4G user base in the major three operators
    • Volume for in-home network service increases
      • Figure 14: broadband services user size in millions from the major three operators
    • Confidence in domestic brands keep driving smartphone popularity
  7. Key Players – What You Need to Know

    • Huawei outperformed Apple as the second-largest global smartphone vendor
    • Xiaomi, OPPO and Vivo is expected to take part of the domestic medium to high-end market
    • The five key players in domestic market
  8. Key Players Performance

    • Huawei’s shows tremendous growth in domestic market
      • Figure 15: China smartphone market top five companies estimated retail unit sales, in millions, 2018 and 2019
    • Huawei
    • Vivo
    • OPPO
    • Xiaomi
    • Apple
  9. Competitive Strategies

    • Building AIoT ecology
    • Building success abroad
    • Domestic brands are doing chip design
    • Wearable device to assist in smartphone sales
  10. Who’s Innovating?

    • Foldable screens respond to needs for bigger screens
    • Smartphone for gaming
      • Figure 16: Nubia Red Magic 5G, March 2020
    • Smart Car solution
    • Gimbal camera for vloggers
      • Figure 17: VIVO X5 series
    • In-screen fingerprint scanner
  11. The Consumer – What You Need to Know

    • More 5G network usage scenarios will help consumer upgrades
    • Huawei leads the market in ownership
    • Operating experience tops most desired feature for upgrading
    • Prolonged upgrade cycles
  12. Ownership of Smartphone

    • Huawei tops the ownership
      • Figure 18: Current ownership of smartphone brands, June 2020
    • Market competition has turned into five parties
      • Figure 19: Current smartphone brand owned 2016 and 2020
    • Slower innovation pace extended upgrade cycle
      • Figure 20: Frequency of smartphone upgrades, June 2020
    • OPPO has the highest re-purchase cycle
      • Figure 21: Frequency of smartphone upgrades, June 2020
    • Both older and younger consumers hold current smartphones for longer
      • Figure 22: Frequency of smartphone upgrades, June 2020
  13. Budget for the Current and the Next Smartphone

    • Consumers hold more budget towards their next smartphone
      • Figure 23: Price for current smartphone and the budget for the next one, June 2020
    • Consumers aged 25-29 years old have higher budgets
      • Figure 24: Budget for the next mobile phone, June 2020
    • Tier three consumers have strong purchase potential but usage seems the hindering factor
      • Figure 25: Price for current smartphone and the budget for the next one, June 2020
    • Elaborating mid-range models
      • Figure 26: Budget for the next smartphone, by smartphone brand owned, June 2020
  14. New Features for Smartphone Upgrade

    • Smartphone customers are unanimous in wanting functionality
      • Figure 27: The drivers for smartphone upgrade, June 2020
    • Tier three consumers especially interested in VR
      • Figure 28: New features for smartphone upgrade, has advanced AR function, by city tier, June 2020
    • Price sensitive users show low interest in 5G
      • Figure 29: New features for smartphone upgrade, is 5G ready, by smartphone brand owned, June 2020
    • Camera improvements and innovations are a better draw among women
      • Figure 30: New features for smartphone upgrade, related to camera quality, by gender, June 2020
    • Foldable screens smartphone expect room for growth
      • Figure 31: New features for smartphone upgrade, foldable screen, by gender, by age, June 2020
  15. Monthly Spending on Mobile Phone Plans

    • 4G continues to be instrumental
      • Figure 32: Monthly spending on mobile phone plans, by network generations, June 2020
    • Apple owners tend to pay more for their mobile plans now and in the future
      • Figure 33: Monthly spending on mobile phone plans, by smartphone brand owned, June 2020
    • Budget may come as a hindering factor for 5G mobile plan upgrades
      • Figure 34: Monthly spending on mobile phone plans, by household income, June 2020
  16. Factors for data plan change

    • Data roaming considered an essential service
      • Figure 35: Factors considered when switching operators, June 2020
    • Females show favouritism towards additional perks
      • Figure 36: Factors considered when switching mobile operators, by gender, June 2020
    • Older consumers seek larger data plan
      • Figure 37: Factors considered when switching mobile operators, size of the data plan, by age, June 2020
    • Tier three consumers value offline retail experience
      • Figure 38: Factors considered when switching mobile operators, offline retail packaged gifts, by city tier, June 2020
  17. Attitude towards 5G Network

    • Knowledge of 5G benefits are generally lacking among consumers
      • Figure 39: Attitude towards the 5G network, June 2020
    • Apple might end consumer desire towards 5G in Q4
      • Figure 40: Attitude towards mobile phone choice and mobile apps with 5G, June 2020
    • To lower 5G smartphones’ entry-level to boost upgrades
      • Figure 41: Attitude towards 5G, agrees to 5G ready smartphones are too expensive, by smartphone upgrade timing, June 2020
    • Early adopters are likely to be middle-aged consumers
      • Figure 42: Attitude towards 5G network, disagrees to I’d like to wait until 5G technology is more mature before using it, by age, June 2020
  18. Meet the Mintropolitans

    • Most Mintropolitans will change their smartphone in 1-2 years
      • Figure 43: Frequency to switch mobile phones, by consumer classification, June 2020
    • 5G enabled mobile apps is highly anticipated amongst younger Mintropolitans
      • Figure 44: Attitude towards 5G networks, by consumer classification, by age, June 2020
  19. Appendix – Market Size, Segmentation and Forecast

      • Figure 45: Total China retail sales and forecast of smartphone, at current prices 2015-25
  20. Appendix – Methodology and Abbreviations

    • Methodology
    • Abbreviations

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This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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