Cheaper Smartphones Will Propel China Over The U.S. On Shipments

Strong end-user demand and an appetite for lower-priced smartphones will make China the largest market for smartphones this year, overtaking the United States as the global leader in smartphone shipments.

According to the International Data Corporation Worldwide Quarterly Mobile Phone Tracker, China will account for 26.5% of all smartphone shipments in 2012, compared to 17.8% for the United States.

As it becomes the leading country for smartphone shipments this year, the Chinese smartphone market will continue to grow, primarily on demand for lower-cost handsets. While this bodes well from a volume perspective, it reportedly also means lower average sales values, thinner margins, and increased competition from all players.

Over the course of the forecast, China's share of the global smartphone market will decline somewhat as smartphone adoption accelerates in other emerging markets.

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