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Chinese Manufacturers Looking To Expand Abroad

August 21, 2014 - Written By Kristijan Lucic

China has a lot of smartphone manufacturers, along with that a lot of competition on when it comes to the smartphone market. It’s no wonder many of those manufacturers are looking abroad in order to expand their business. Lenovo and Huawei have already done that to some extent, they’ve began expanding with other companies soon to follow. Huawei has some presence in Europe, while Lenovo bought Motorola Mobility from Google and by doing that immediately opened the North American market for the company.

As I said, other companies are looking to do the same thing, like Coolpad for example, a China-based manufacturer which intends to spend millions of dollars this year in order to promote its devices in Europe, US and Southeast Asia. Xiaomi is yet another great example of a Chinese manufacturer which is doing its best to expand. They’ve already opened up an office in Brazil and are doing their best to start selling their devices as soon as possible, though they still have to overcome some difficulties before they can do that. You wonder why are all these manufacturers looking to expand abroad? Well, according to BNP Paribas analyst Peter you China’s smartphone market is getting saturated, so if these companies want to keep on growing they have to expand outside of China. Smartphone shipments in China have quadrupled between 2011 and 2013, an information which says a lot on its own. In addition to this, smartphone sales are rising rapidly in markets like Latin America, India and Southeast Asia considering people are ditching their regular cellular phones and are buying smartphones over there. It makes all the sense in the world these manufacturers would like to expand their business to those markets.

Lenovo’s Chief Executive, Yang Yuanqing, actually called China the toughest smartphone market in the world and IDC analyst Kiranjeet Kaur second that motion. There are more staggering data to account in all this, smartphone shipments in Southeast Asia jumped 400% year-over-year while Europe they went up 600% during the same time period. It is really no wonder all of these companies are trying to break into those markets as soon as possible and they will sure create some additional competition, which is always good I guess.