Phony Competition

According to statistics from Counterpoint Research, a market consultancy, the global shipment volume of smart phones increased by 2.3 percent in 2016, while Chinese brands saw an increase of 6 percent year on year, producing 465 million devices. In the second quarter of 2017, Chinese brands secured three places in the top-five list of global market share. Despite this performance, Chinese cellphone brands lack core technology and innovation in chips, storage and screens, the three crucial hardware components of mobile phones. Each area of the production chain of mobile phones is highly monopolized, and it is virtually impossible to come up with a differentiated product without global cooperation. The next three to five years will be the most critical period for Chinese brands, ushering in an era of 5G, artificial intelligence and the Internet of Things. A crisis looms large over domestic brands if they fail to develop core technologies or gain a voice in the setting of international standards.