The current state of the global mobile phone market
Smartphones have become an indispensable part of modern life, and the global mobile phone market has been one of the most concerned areas in the technology industry. According to the latest market research data, among the top 10 manufacturers in global smartphone shipments in the first quarter of 2023, the two traditional giants of Apple and Samsung occupy the top two, and domestic mobile phone brands cannot enter the top 10 for the time being. This landscape has remained unchanged over the past few years, reflecting the absolute dominance of Apple and Samsung in the global mobile phone market.
While domestic phone brands like Xiaomi, OPPO and vivo are doing well in the domestic market and are among the top five in global shipments, their market share is still relatively small compared to Apple and Samsung. This shows that if domestic mobile phones want to make a real breakthrough in the global market, they still need to make long-term and arduous efforts.
Apple Samsung advantage
The reason why Apple and Samsung have been able to occupy a leading position in the global mobile phone market for a long time is mainly due to their comprehensive advantages in brand influence, technological innovation capabilities, product experience and global layout.
Both Apple and Samsung have extremely high brand awareness and reputation. Apple's innovative ideas and excellent marketing strategies have successfully created a world-renowned brand image of "Apple", and its products are considered synonymous with fashion, cutting-edge and high-end. Samsung, on the other hand, has established a trusted brand image of "Samsung" on a global scale through its advertising and product diversification. A strong brand presence not only attracts consumers, but also helps to increase the premium power of the product.
Both Apple and Samsung have industry-leading technological innovation capabilities. Apple is at the forefront of the industry in areas such as mobile operating systems, chip design, artificial intelligence, etc., and its products often bring new experiences. Samsung, on the other hand, stands out in hardware innovations, such as foldable screens and high-end cameras, to provide consumers with a unique and differentiated experience. The strong innovation capabilities of Apple and Samsung enable them to stay ahead of industry trends and stay ahead of emerging technology opportunities.
Both Apple and Samsung can provide users with a superior product experience. Through the deep integration of software and hardware and the construction of an ecosystem, Apple has achieved seamless integration of hardware, software and services, bringing users a smooth, safe and efficient user experience. Samsung, on the other hand, has put a lot of effort into hardware quality, system optimization, and user interface design to provide users with the ultimate experience. A great product experience not only increases user stickiness, but also helps build brand loyalty.
Both Apple and Samsung have mature global presences. They have established localized supply chains, production bases and sales channels around the world, and are able to respond quickly to the needs of different markets. They also carry out marketing and branding activities on a global scale, increasing their visibility and influence in overseas markets. The perfect global layout enables Apple and Samsung to make full use of global resources to achieve scale and cost advantages.
The reason why Apple and Samsung have been able to dominate the global mobile phone market for a long time is precisely because of their comprehensive advantages in many key areas such as brand influence, technological innovation capabilities, product experience and global layout. These advantages influence and promote each other, forming a moat that is difficult to shake.
Challenges faced by domestic mobile phones
There is still a certain gap between domestic mobile phone brands in the above aspects, which is the main reason why it is difficult for them to make breakthroughs in the global market.
The brand awareness and reputation of domestic mobile phone brands around the world are still insufficient. While brands like Xiaomi, OPPO and vivo are already well-known in the domestic market, their brand influence in overseas markets is still relatively limited. This not only affects their ability to premium their products, but also restricts their expansion pace in overseas markets.
Domestic mobile phone brands still need to be strengthened in technological innovation. Although they have made achievements in hardware design and system optimization, there is still a certain gap in core technology fields such as mobile operating systems, chip design, and artificial intelligence, compared with giants such as Apple and Samsung. This is not conducive to their ability to take advantage of emerging technologies, and it may also affect the competitiveness of their products in the future.
Domestic mobile phone brands also need to be improved in terms of product experience. Although they have made great strides in terms of hardware quality and system fluency, they still fall short in terms of hardware and software convergence and ecosystem building compared to top brands such as Apple and Samsung. This can impact the user's experience, which in turn affects brand loyalty.
Domestic mobile phone brands are also lagging behind Apple and Samsung in terms of global layout. Although they have begun to expand their business in overseas markets, their global layout in terms of supply chain, production base and sales channels is still not perfect. This is not conducive to their rapid response to the needs of different markets, and may also affect economies of scale and cost control.
If domestic mobile phone brands want to make a real breakthrough in the global market, they also need to make efforts in brand influence, technological innovation capabilities, product experience and global layout, and strive to narrow the gap with giants such as Apple and Samsung.
A breakthrough strategy for domestic mobile phones
How should domestic mobile phone brands take action to finally become truly global brands? According to industry experts, they need to start from the following aspects:
Domestic mobile phone brands need to increase R&D investment and improve their technological innovation capabilities. Technological innovation is the core competitiveness of the mobile phone industry, and only by mastering the key core technologies can we occupy an advantage in product innovation and experience optimization. Therefore, domestic mobile phone brands should increase investment in mobile operating systems, chip design, artificial intelligence and other fields to cultivate independent innovation capabilities. They should also strengthen cooperation with scientific research institutions and universities, attract outstanding talents, and build a strong technology research and development team.
Domestic mobile phone brands need to strengthen brand marketing and improve their visibility and reputation in overseas markets. Brand influence is the foundation of mobile phone manufacturers in the global market, and the lack of brand influence will seriously restrict their development space. Therefore, domestic mobile phone brands should formulate a global brand marketing strategy, and continuously improve the brand's exposure and recognition in overseas markets through various channels such as advertising, sponsorship activities, and news promotion. They should also pay attention to product quality and service levels, and strive to establish a good brand image.
Domestic mobile phone brands need to improve their global layout and accelerate the pace of expansion in overseas markets. Global layout is the key for mobile phone manufacturers to achieve scale effect and cost advantage. Therefore, domestic mobile phone brands should establish localized supply chains, production bases and sales channels around the world in order to quickly respond to the needs of different markets. They should also strengthen cooperation with local partners and better integrate into the local market with the help of local resources and channels.
Domestic mobile phone brands should also give full play to their cost-effective advantages and occupy a place in the low-end market. Although there are certain difficulties in competing head-on with Apple and Samsung in the high-end market, in the low-end market, domestic mobile phone brands still have the opportunity to gain a certain share by virtue of their cost advantages and cost-effective advantages. They should launch more cost-effective products in the low-end market to meet the needs of different consumer groups.
Domestic mobile phone brands should also start cultivating their own ecosystems and building value-added services beyond mobile phone hardware. Ecosystem is one of the core competitiveness of modern mobile phone manufacturers, and it is also the key to improving user stickiness and brand loyalty. Domestic mobile phone brands should increase investment in cloud services, app stores, smart homes and other fields to provide users with more value-added services, so as to build their own ecosystems.
If domestic mobile phone brands want to become a truly global brand, they also need to adhere to the strategy of innovation and internationalization for a long time, and make efforts in technological innovation, brand marketing, global layout, cost-effective advantages and ecosystem construction. This is a long and difficult process that requires continuous efforts from domestic mobile phone brands.