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Chinese smartphone makers rise to rival Samsung, Apple

(Xinhua) Updated: 2015-01-31 13:01

Huawei's helmsman Ren Zhengfei said earlier this month at the World Economic Forum that the company will shift away from a growth route based on low price and low quality.

Gartner estimated that the combined global share of Huawei, Xiaomi and Lenovo increased 4.1 percentage points to 15.5 percent. Analysts predicted there is still great potential for further growth at their "home court", although China's mobile phone market is almost saturated.

"China's western regions, especially the rural areas, will see double-digit growth in smartphone sales in coming one to two years," said a research note from market intelligence firm International Data Corporation (IDC).

Fast-growing 4G networks will also create large room for compatible smartphones, according to IDC.

Retreating Samsung, Advancing Apple

The South Korean company retains its crown as world's No 1 smartphone maker, but its market share declined 7.7 percentage points from a year earlier to 24.4 percent in the third quarter.

Earnings from their mobile division rebounded on a quarterly basis, but the number dropped 64 percent on a year-on-year basis to 1.96 trillion won ($1.8 billion) in the fourth quarter.

Samsung launched two cheap models in January in its home market to fight China-made low-end smartphones.

To diversify earnings, Samsung will focus on Internet of Things in 2015 as one of its new growth engines.

Apple's financial results showed its quarterly revenue and net profits grew 30 percent and 38 percent annually in the fourth quarter.

These results were fueled by all-time record revenue from iPhone and Mac sales as well as record performance of the App Store.

Apple is experiencing their most rapid growth in China since opening the first store in 2008, according to Apple VP retail real estate/development Bob Bridger.

Earlier this month, a report from investment banking firm UBS showed China has overtaken the United States as the largest iPhone buyer thanks to strong demand for iPhone 6 and 6 plus.

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