Domestic mobile phones occupy eighty percent of the market, the gap still exists, can it surpass foreign brands?
In recent years, the performance of domestic mobile phone brands in the domestic market has been remarkable. According to statistics, the share of domestic mobile phones in the domestic market in 2023 will be as high as 82%, far ahead of foreign brands. This achievement is inseparable from the unremitting efforts of domestic mobile phone manufacturers in product innovation and marketing strategies.
It is undeniable that the rise of domestic mobile phone brands has brought more choices to domestic consumers. From the cost-effective thousand-yuan machine to the high-end flagship machine with flagship, domestic mobile phones undoubtedly meet the needs of different consumer groups. Taking the Huawei Pura70 series as an example, the hardware specifications of its top-of-the-line Ultra version even surpass the flagship models of foreign brands listed at the same time, but the price is only about half of the latter, which can be described as a masterpiece of high performance and high cost performance.
In addition to hardware strength, domestic mobile phone brands also have excellent performance in terms of software experience. Taking Xiaomi's MIUI system as an example, its operation interface is simple and refreshing, and its functions are also quite practical and user-friendly, which is favored by domestic users. Domestic mobile phone brands also attach great importance to localized services, such as providing users with intimate services such as dialect voice assistants and featured theme wallpapers, so that users can feel at home.
The outstanding performance of domestic mobile phones is also inseparable from the huge domestic consumer market. As the world's largest consumer of smartphones, the demand in the Chinese market is sufficient to support the large-scale production and rapid iteration of domestic mobile phone manufacturers. The advantages of localization also allow domestic mobile phones to better meet the usage habits and aesthetic preferences of domestic users.
Although domestic mobile phones have dominated the country, their share of the global market is still low compared to foreign brands. According to data from Fang Research Agency, the share of domestic mobile phones in the global smartphone market in 2023 will only be about 18%, and there is still a certain gap with foreign giants such as Samsung and Apple.
The reason is, on the one hand, that the share of domestic mobile phones in the high-end flagship market is not high. While products like the Huawei Pura70 Ultra have excellent hardware performance, overall, the global market share of domestic flagship models is still low. On the other hand, the brand influence and marketing network of domestic mobile phones in overseas markets also need to be strengthened.
In terms of key components and core technologies, there is also a certain gap between domestic mobile phones and foreign brands. At present, core components such as processor chips and camera sensors used in domestic mobile phones still rely on overseas suppliers. In the core technology fields such as operating systems and chip design, domestic enterprises are also in a catch-up position.
It is gratifying that in recent years, the domestic mobile phone industry chain is accelerating and improving, and the process of domestic substitution is steadily advancing. Taking the Huawei Pura70 series as an example, except for the top-of-the-line Ultra version, more than 90% of the key components of the other models come from domestic companies. This marks that domestic mobile phones are only one step away from being completely autonomous and controllable.
In the face of the challenge of foreign brands, domestic mobile phone manufacturers are increasing investment in innovation and marching into the high-end market. Huawei, for example, has spared no effort in investing in R&D expenses. It is understood that Huawei's R&D expenses in 2022 will reach 142.2 billion yuan, accounting for 22.4% of the total revenue of that year, ranking among the top global technology companies.
This huge investment is mainly used for the independent research and development of core technologies such as chips, operating systems, and cameras, aiming to break the dilemma of domestic mobile phones relying on external suppliers for a long time. Huawei's self-research capabilities in the chip field have achieved initial results. Its latest generation of Kirin 9000 series mobile chips not only leads its peers in single-core and multi-core performance, but also performs very well in energy efficiency.
In addition to chips, Huawei has also made many innovative breakthroughs in operating systems and camera technology. The HarmonyOS can run across terminals, and its compatibility and fluency have won unanimous praise in the industry; Huawei's self-developed ultra-vision Leica imaging system takes the mobile photography experience to a new level.
In addition to Huawei, other domestic mobile phone brands are also increasing innovation. Xiaomi, OPPO, vivo and other manufacturers have set up their own chip research and development teams, hoping to master the core technology. They are also working tirelessly in areas such as artificial intelligence and imaging systems in order to occupy a place in the future wave of technology.
It is not difficult to see that domestic mobile phone brands are getting rid of the strategy of simply chasing cost performance in the past, and instead set their sights on the high-end flagship market. They hope that through independent innovation, they will compete with foreign giants in terms of product strength and brand influence.
The improvement of the domestic mobile phone industry chain also provides favorable conditions for the development and growth of domestic mobile phone brands. Taking the new energy vehicle industry as an example, its large demand for chips is driving the rapid development of the domestic chip industry. According to statistics, in 2022, domestic chip production will increase by 40% year-on-year, and the industrial scale has exceeded 1 trillion yuan.
This provides a broad market space for the independent research and development of domestic mobile phone chips. A number of domestic chip companies have begun to provide customized chip solutions for mobile phone manufacturers. With the continuous improvement of domestic chip strength, domestic mobile phones will be able to completely get rid of dependence on external suppliers.
In addition to chips, other links in the upstream and downstream of the domestic mobile phone industry chain are also accelerating and improving. Taking lens modules as an example, domestic manufacturers such as Continental, Sunny, and O-film have been able to provide high-quality lens solutions for mobile phone brands. In the field of batteries, structural parts and other parts, the strength of domestic enterprises is also increasing.
In the next few years, domestic mobile phones will be able to realize the localization of most key components and truly achieve independent control. At that time, domestic mobile phone brands will completely get rid of their dependence on external suppliers and gain huge advantages in terms of cost and supply chain control.
To compete with foreign giants in the global market, it is not enough to rely on a perfect industrial chain. The construction of brand influence and marketing network is also the focus of domestic mobile phones.
At present, the popularity and reputation of domestic mobile phone brands in overseas markets still need to be improved. Taking Huawei as an example, although the brand enjoys high recognition at home and abroad, its image still has the impression of being a "sub-brand" in overseas markets. Reversing this situation will undoubtedly require a larger investment in brand marketing.
Domestic mobile phone brands also need to strengthen the construction of overseas marketing networks. At present, their overseas marketing channels and service outlets are still relatively weak, and it is difficult to provide users with timely and efficient localization services. Domestic mobile phone brands may need to establish more offline experience stores in key markets and strengthen cooperation with local operators to better integrate into the local market.
In order to compete with foreign giants in the global market, domestic mobile phone brands need to strive for excellence in product strength, as well as intensive cultivation in brand marketing and channel construction. Only in this way can they truly win the favor of consumers around the world and achieve overtaking in corners.
For ordinary consumers, the rise of domestic mobile phone brands is undoubtedly good news worth celebrating. We will have more diversified choices, not only can buy cost-effective affordable models, but also can buy flagship models with equal emphasis on strength and quality. The competition of domestic mobile phone brands will also prompt them to continue to innovate and change, bringing more surprises to consumers.