2013Q1 China Smartphone Market

Quarterly Research Report

(Internal Version)

2013.04

Catalogue

Research Method ...................................................................................................................... 1

Definitions of Concepts ............................................................................................................. 2

Abstract ..................................................................................................................................... 3

Analysis and Discussion ............................................................................................................. 5

Main Body.................................................................................................................................. 6

1. The Development of the Scale of Chinese Smartphone Users in 2013 Q1. ...................... 6

2. The Sales Volume of Chinese Smartphone in 2013 Q1. .................................................... 7

3. The Sales Ratio of Every Brand in Chinese Smartphone Market in 2013 Q1. ................... 7

4. The Sales Ratio of the Smartphone with Different price in Chinese Market of 2013 Q1. 8

5. The Market Share of Chinese Smartphone Brands in 2013 Q1. ........................................ 9

6. The Distribution of Operating Systems in Chinese Smartphone Market of 2013 Q1. ...... 9

7. The User Percentage of Every iPhone Version in Chinese Market of 2013 Q1. .............. 10

8. The Monthly Traffic Distribution of Chinese 3G Smartphone Users in 2013 Q1. ........... 11

9. The Purchase Intension of Chinese Mobile Users in 2013 Q1. ........................................ 12

10. The Investigation of Chinese Smartphone User’s Purchase (Intended) Channel. ......... 13

Legal Declaration ..................................................................................................................... 14

About iiMedia .......................................................................................................................... 15

1

Research Method

This report adopts industry in-depth interview, desk study, etc. with iiMedia’s

owned User Data Monitoring System.

Understanding the major situation about relevant industries by means of

taking in-depth interviews with industry experts, operators, sellers of

mobile phone input method and distributors to collect the relevant data

we need.

Selecting and comparing some of relevant publish information, as well as

referring to the user research data to obtain the data about industry scale

through desk study finally.

Data and information from government

Industry publish information

Corporation Annual Report and Quarterly Report.

Viewpoints published by senior experts in the industry.

Relevant data analysis with iiMedia’s database and Chinese mobile

internet data research community platform (CMOSS).

2

Definitions of Concepts

Smartphone

Smartphone is a generic term of a kind of mobile phone like a personal

computer that owns independent operating system, enables users to

install the third party program, such as software and game and extends

the mobile phone’s function by this kind of program and accessing

wireless network.

Smartphone Software

The Smartphone software is a kind of software that can be installed in the

mobile phone, as well as improving the deficient the original system and

personalization. With the development of technology, currently the mobile

phone’s functions have an increasing number and power instead of being

simple like the past time. Smartphone users must consider the operating

system installed in the mobile phone they buy to decide the relevant

software they will download.

Smartphone Operating System

It is a gathering of system software that controls the program’s working,

manages system resources and provides users with operation interface.

The operating systems installed in the different Smartphone are different.

Nowadays the popular operating systems in the Smartphone market

include Android, iOS, Symbian, etc.

3

Abstract

As of the first quarter of 2013, iiMedia Research displays that the number

of Chinese Smartphone users has reached 420 million and grown

compared 10.3%.

iiMedia Research shows that Chinese Smartphone’s sales volume in 2013

Q1 breakthroughs 59 million and increases 13.2% in comparison with last

quarter.

About Chinese Smartphone’s sales volume in 2013 Q1, iiMedia Research

reveals Samsung is on top with 17.9%, but its lead is relatively weaker

than last year. Among the domestic Smartphone’s brands, the

percentages of Lenovo, Coolpad, Huawei and ZTE are 12.0%, 11.8%,

11.2%, 9.3%. Xiaomi has very strong reserve strength, getting 3.9%

sales in this quarter.

About the sales ratio of the Smartphone at different price level in the

Chinese market of 2013 Q1, iiMedia Research demonstrates that the kind

of Smartphone below RMB2000 lies in the mainstream with 75.9%, while

the high-end Smartphone over RMB4000 occupies 4.5%.

About the market share of Chinese Smartphone brands in 2013 Q1,

iiMedia Research presents that Samsung, Nokia and Apple account for

24.5%, 14.6% and 12.9% respectively. In the first quarter of 2013, the

market shares of domestic brands have increased with different degrees.

Some of them like Lenovo, Huawei, Coolpad and ZTE occupy 9.1%, 8.5%,

8.2% and 7.2%.

At the distribution of operating systems in Chinese Smartphone market in

2013 Q1, iiMedia Research explores Android, iOS and Symbian had been

taking 71.0%, 12.9% and 10.2% each.

4

Among iPhone’s versions in Chinese market of 2013 Q1, iiMedia Research

illustrates that iPhone4 and iPhone4S are still on top currently with 43.5%

and 35.5% users, while iPhone5 has 14.9% users.

iiMedia Research’s data show that the percentage of users who have over

300M monthly 3G traffic on every Smartphone’s platform appears a

obvious difference among the users of Chinese 3G Smartphone in 2013

Q1. Particularly iOS users whose traffic over 300M are close to 50%. The

ratio of Android’s and Windows’ users is very nearly the same, meanwhile,

the monthly traffic of Symbian’s users is relatively low, occupying 5.4%

users who have over 300M traffic.

iiMedia Research demonstrates that there are 73.1% interviewees in 2013

Q1 having the intentions to buy a new mobile phone in the coming

quarter, while 26.9% said they had not.

iiMedia Research presents that the channels of operators and e-business

have been focused mostly by Smartphone users who intend buy a new

mobile phone, with 46.6% and 38.1% users who would consider these

channels first in the future.

5

Analysis and Discussion

In regard to the increasing attention to e-business channel from domestic

Smartphone top brands, the trend of flattening the mobile phone channel

is apparent. In the future, the proportion of the e-business channel will

expand in the mobile phone channel.

With the Smartphone’s continuously popularity and function’s improving,

Smartphone’s substitutability towards some of electronic product is

blindingly obvious, especially for those products like camera and game

machine.

As the severe competition in domestic Smartphone market, some of

Chinese mobile phone manufacturers are struggling to develop oversea

market, the top manufacturers have been putting a lot enthusiasm into it

particularly.

The popular Smartphone shops in China no longer chase after the growth

on quantity only, but also start to concern the growth on profit meanwhile.

However, it seems that this change would not happen in a short term. At

the same time of earning money, the domestic top mobile phone

manufacturers will also pay more attention to build the brand, seeking the

brand premium and brand influence and transiting to the brand-building

from price-oriented gradually.

While mobile phone manufacturers are launching new product and

increasing the pace of product updates, they also have to keep watch the

potential risk in the supply chain. The ability of managing the supply chain

would be having a great effect on the brand performance in the market.

6

Main Body

1. The Development of the Scale of Chinese Smartphone Users in 2013 Q1.

iiMedia Research displays Chinese Smartphone users have reached 420

million and grown compared 10.3% as of the first quarter of 2013.

2.5 2.9 3.3 3.8 4.2

15.1% 13.8%

15.2%

10.3%

0%

5%

10%

15%

20%

0.0

1.0

2.0

3.0

4.0

5.0

2012Q1 2012Q2 2012Q3 2012Q4 2013Q1User Scale（100 million） Growth Rate

7

2. The Sales Volume of Chinese Smartphone in 2013 Q1.

iiMedia Research shows that Chinese Smartphone’s sales volume in 2013 Q1

breakthroughs 59 million, reaches 59.3 million mobile phones and increased

13.2% in comparison with last quarter.

3. The Sales Ratio of Every Brand in Chinese Smartphone Market in 2013

Q1.

2895 3800 4980 5240 5930

31.3% 31.1%

5.2%

13.2%

-5%

5%

15%

25%

35%

0

1000

2000

3000

4000

5000

6000

7000

2012Q1 2012Q2 2012Q3 2012Q4 2013Q1Sales (10 thousand) Growth Rate

17.9%

12.0%

11.2%

11.8% 9.3%

9.9%

4.6% 3.9%

19.4%

Others

BRAND MARKET SHARE

Samsung 17.9%

Lenovo 12.0%

Coolpad 11.8%

Huawei 11.2%

Apple 9.9%

ZTE 9.3%

HTC 4.6%

Xiaomi 3.9%

Others 19.4%

8

At the area of Chinese Smartphone’s sales volume in 2013 Q1, iiMedia

Research reveals that Samsung is on top with 17.9%, but its lead is relatively

weaker than last year; Among the domestic Smartphone brand, the

percentages of Lenovo, Coolpad, Huawei and ZTE are 12.0%, 11.8%, 11.2%,

9.3%; Xiaomi has very strong reserve strength, getting 3.9% in this quarter

4. The Sales Ratio of the Smartphone with Different price in Chinese Market

of 2013 Q1.

(元=Yuan)

About the sales ratio of the Smartphone with different price in the Chinese

market of 2013 Q1, iiMedia Research demonstrates that the kind of

Smartphone below RMB2000 lies in the mainstream with 75.9%, while the

high-end Smartphone over RMB4000 occupies 4.5%.

1000元以下

35.8%

1000-2000

元

40.1%

2000-3000

元

13.7%

3000-4000

元

5.9%

4000元以上

4.5%

9

5. The Market Share of Chinese Smartphone Brands in 2013 Q1.

About the market share of Chinese Smartphone brands in 2013 Q1, iiMedia

Research presents that Samsung, Nokia and Apple account for 24.5%, 14.6%

and 12.9% respectively. In the first quarter of 2013, the market shares of

domestic brands have increased with different degrees. Some of them like

Lenovo, Huawei, Coolpad and ZTE occupy 9.1%, 8.5%, 8.2% and 7.2%.

6. The Distribution of Operating Systems in Chinese Smartphone Market of

2013 Q1.

24.5%

14.6%

12.9%

9.1% 8.5%

8.2%

7.2%

5.2%

2.4% 7.4%

10

71.0%

10.2%

12.9%

3.6%

Others

2.3%

At the distribution of operating systems in Chinese Smartphone market of

2013 Q1, iiMedia Research explores that Android, iOS and Symbian had been

taking 71.0%, 12.9% and 10.2% each.

7. The User Percentage of Every iPhone Version in Chinese Market of 2013

Q1.

iPhone4

43.5%

iPhone4S

35.5%

iPhone5

14.9%

others

6.1%

11

Among iPhone’s versions in Chinese market of 2013 Q1, iiMedia Research

illustrates that that iPhone4 and iPhone4S are still on top currently with 43.5%

and 35.5% users, while iPhone5’s has 14.9%. iiMdedia Research analyses

iPhone users prefer iPhone4(S), and iPhone5’s performance in Chinese market

still remains to be seen.

8. The Monthly Traffic Distribution of Chinese 3G Smartphone Users in

2013 Q1.

iiMedia Research’s data show that the percentage of users who have over

300M monthly 3G traffic on every Smartphone’s platform appears the obvious

difference among the users of Chinese 3G Smartphone in 2013 Q1.

Particularly iOS users whose traffics are over 300M are close to 50%. The

ratio of Android’s and Windows’ users is very nearly the same, meanwhile, the

monthly traffic of Symbian’s users is relatively low, occupying 5.4% users who

have over 300M traffic.

49.0%

21.7%

5.4%

20.2%

12.6%

0% 10% 20% 30% 40% 50% 60%

iOS

Android

Symbian

windows series

Others

Percentage of users over 300M monthly traffics

12

9. The Purchase Intension of Chinese Mobile Users in 2013 Q1.

iiMedia Research demonstrates that there are 73.1% interviewees in 2013 Q1

having the intention to buy a new mobile phone in the coming quarter, while

26.9% said they had not. The research also expresses there are 78.3% users

26.9%

73.1%

not intend to buy

intend to buy

5.4%

78.3%

16.3%

For other people

Replace the original mobile phone

Use with the original mobile phone

together

13

going to buy a new mobile phone to replace the original one among those

have purchase intention, while 16.3% would use a new mobile phone with

the original one together.

10. The Investigation of Chinese Smartphone User’s Purchase (Intended)

Channel.

iiMedia Research presents that the channels of operators and e-business have

been focuses mostly for the Smartphone users who plan to buy a new one,

with 46.6% and 38.1% users who would consider these channels first in the

future. With the gradual transform of every mobile phone brand

manufacturers’ attention towards e-business channel, the percentage of e-

business percentage would be increasing in the coming days.

30.7%

9.6%

24.2%

46.1%

33.4%

6.9%

38.1%

3.1% 7.5%

0%

10%

20%

30%

40%

50%

Intended Purchase Channel

14

Legal Declaration

This report is researched and made by iiMedia Research. The text, images

and graphs in the report are subject to the protection of intellectual property

laws and regulations of People’s Republic of China and Hong Kong Special

Administrative Region. Any non-commercial reports, excerpts and quotations

must be indicated the copyright reference source. iiMedia Research will

provide the relevant government decision-making body, well-known media

and industry research institution with some data quotation, but refuse to offer

free quotations to any business research which infringes iiMedia Research’s

copyright.

The research data in this report are collected from the industry in-depth

interview, user research and desk study. Some data have not permitted by

the relevant operators directly. Meanwhile, the research data are obtained by

sample research methods so that the results are affected by the sample.

Some data may not be able to reflect the real market situation completely.

Therefore, this report is for person’s and company’s market reference only.

We will not bear legal liability with employing this report. Please don’t read

and employ this report before you accept this statement.

15

About iiMedia

iiMedia Research, a world famous third-party data mining and integrated

marketing agency in the mobile internet, started to use the brand ‘iiMedia’

in 2007. iiMedia Research is China’s first authoritative agency in the mobile

internet, smart phone and E-commerce. After 2012, iiMedia Research officially

became a member of CAMIR, which is under the leading of the National

Bureau of Statistics. Among all the members of CAMIR, iiMedia is the only one

who focuses on market research in the mobile internet.

iiMedia Research is in Hongkong, Guangzhou, Tokyo, with independent legal

business operations branch. At present, the company in the mainland areas of

staff of about 70 people, including market research, technology and customer

service staff.

iiMedia Research keep pace with including mobile entertainment, TV, reading,

games, wireless value-added and other major areas closely. iiMedia Research

make good use of advanced information technology, through in-depth and

extensive study of government policy, business, capital operation and

consumer behavior, the network new economy industries to provide

marketing consulting, decision-making basis, investment strategy, market

research and strategic consulting services, professional market research

projects.

As of 2011 September, iiMedia Research released China Mobile Internet

industry chain report more than 500 copies, the famous Chinese and foreign

customers more than 200 , China Mobile Internet senior club membership

over 600, China mobile phone application developers club membership about

25000. CMOSS survey system now has a sample of more than 500000 mobile

phone users.