Here’s Why Chinese Smartphone Giants Have Failed in the US: Counterpoint

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We’ve seen Chinese-branded smartphones making waves in market regions like India, Russia, and even Africa. Unfortunately, only a handful of Chinese handsets have been able to break into the US market.

Even phones produced by Chinese giants like Huawei, Oppo, Vivo, and Lenovo are not even close to making it into the US market.

However, the latest survey by analysts has shown that new Chinese devices will take the US market by storm. Well, haven’t we all heard that line before?

In fact, according to one new report, so-called analyst have been making that same prediction for over 10 years now, and nothing to show for it.

According to Jeff Fieldhack, a Research Director, he claims that there has been limited change on this front considering the fact that original equipment manufacturers (OEMs) own more than 43 percent of handset market share compared to the US that is just 18 percent.

Going by one report, ZTE and Alcatel have managed to claim a seat in the top five, as they have been observed cracking through with solid masses within prepaid avenues.

Another reason why these smartphone companies can’t break into the US market is simply that Carriers continue to hold the power in the US dominating over 70 percent of sales. US carriers are not interested in developing smartphone brands.

The US handset mainly commanded by Verizon Wireless with 147.2 million subscribers (as of second half 2017), whilst AT&T Mobility has about 138.8 million subscribers (as of third half 2017), leaving T-Mobile with 70.7 million subscribers (as of third quarter of 2017).

According to Jeff, “Carriers expect brands to either bring in users on their own recognizance or for brands to spend big money to do so. Further, it is expensive to carry many brands, many stock keeping units (SKUs) – especially when many do not sell well.”

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