Industry Analysis & Industry Trends
Revenue for the Smart Phone Manufacturing industry in China is estimated to increase at an average annual rate of 40.6% over the five years to 2016. In 2016 alone, revenue is expected to grow 26.1% to reach $127.5 billion, mainly driven by increased exports and growing demand for third- and fourth-generation (4G) smart phones. Exports are estimated to account for 71.4% of industry revenue in 2016.
With the rapid development of 3G and 4G technology, an abundant smart phone product portfolio and competitive product pricing, demand for smart phones has been growing strongly. In late 2013, the Ministry of Industry and Information issued 4G licenses to China Mobile, China Unicom and China Telecom, further spurring demand for smart phones and the development of the industry.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on labor (i.e. wages and research and development) in this industry, 73 cents are invested in capital, which indicates a high level of capital intensity.
Smart phone manufacturing requires a large amount of capital to purchase production equipment and investment in R&D. With increasing numbers of global manufacturers increasing their R&D activities in China, China has become the manufacturing base for smart phones and its share of global output is increasing every year.
Distribution channel development is crucial to sales of new products and manufacturers invest significantly in the promotion of new products. In recent years, development of retail networks with specialized stands in large retail stores or specialty stores have intensified.
.. purchase to read more