With the revolution of modern technologies especially in smartphone these days changes the growth in communication devices market. The levels of competitions are rising up both locally and internationally. This competition affects not only in innovation and production, but also in marketing and the demographic markets. Not only U.S, but other countries such as Korea and China are opening up and growing in economy, making them some of the most active in smartphone market.
There are 3 countries on the top of smartphone market share, U.S, Korea, and China. Korean’s smartphone company domination in worldwide triggers the U.S and Chinese company to widen their market in smartphone. This affects business in international such as economy growth, international trading, technology advancement, etc. In China, smarphone company like Oppo, Lenovo, Xiaomi, start to rise and compete in the smartphone market worldwide.
Within the rise of ...view middle of the document...
By dealing with China Mobile, gives it access to an additional 700 million subscribers for Apple. They also currently behind market leader, Samsung, in the China’s market. Analysts say their deal with China Mobile could increase Apple’s iPhone shipments in 2014 by 15 million to 30 million. Apple’s CEO, Tim Kook are using international business with China to increase their sales, and to lower the production cost.
The table shows the market share of branded smartphone in Q3 2013, and Q1 2014. It means there are about ±3month differences, Samsung’s smartphone in the first place increases 3.1%, while Apple’s smartphone declines 5.8%. This decline could be the effect of Samsung Galaxy S5 that just launched in April, 2014, while Apple hasn’t launch their new product since September, 2013. Meanwhile, Lenovo, a Chinese company increase their market share by 3.2%. China have resulted in an uptake in global smartphone sales in the first quarter of 2014, according to a latest report from TrendForce. The market research firm says that smartphone shipment worldwide hit 266.9 million units and improved by 1.13% in the first quarter of 2014.
While Apple market shares are dominated by Samsung, Apple is the top U.S. smartphone supplier in Q1, 2014, according to the data from Market Monitor (as shown on the picture below). Samsung on the other hand, is the top handset supplier in the country.
In this condition with the competition, international business between U.S., China, Korea, and other countries become more tense. The competition will keep growing, because customers’ demand on smartphone always increase, supported by the population growth and Generation Z. China will always get the benefit by manufacturing smartphones from Apple, while Chinese smartphone companies begin to rise with probability to be able to take down Apple products in the future.
U.S. as the world’s largest economy could be overtaken by China. U.S.’s share of world GDP was 17.1% in 2011, and China's share was 14.9%. India already overtook Japan to become the world's third largest economy with 6.4% of GDP. With the current economy, if it still remains the same, China could really overtake U.S. as the world’s largest economy this year.