Why is it so difficult for Chinese mobile phone manufacturers to enter the US?
Issue Time:2018-11-06
According to data from IC Insights, a US market research firm, 9 of the top 12 global smartphone production brand rankings came from China in 2017. Globally, the market share of domestic mobile phone stores reached 42%. However, in the US smartphone market, only a small number of domestic mobile phone manufacturers can really stand firm.

On the afternoon of November 5th, China's smart phone company Jiajia released a plus 6T in Shenzhen, and the company officially cooperated with T-Mobile, the third largest carrier brand in the US. T-Mobile said that starting from November 1st, one plus will officially enter T-Mobile for sale in more than 5,600 stores across the United States. This is another Chinese mobile phone manufacturer that has been officially qualified by US carriers after ZTE, Coolpad, TCL and other brands.

It took 11 months to work together. It is the fastest record.

As the world's third largest mobile phone market, the United States is self-evident in terms of sales volume. More importantly, it also has radiation effects on other regions.

However, unlike other overseas markets, the four major operators of AT&T, Sprint, T-Mobile and Verizon in the United States firmly control the smartphone market. If a mobile phone does not receive the support of mainstream operators, it will mean this. Mobile phones will not have large-scale sales in the United States.

According to public information, T-Mobile is currently the third largest carrier brand in the US, with sales of smartphones reaching 8 million units per quarter and more than 109 million users in many countries in Europe and America. It is the only mobile phone company that uses a unified brand in Europe and the United States.

"From the beginning of negotiations with T-Mobile to the announcement of cooperation, it took only 11 months to complete. This broke the shortest record of the negotiation cycle in T-Mobile history." One plus CEO Liu Zuohu said. However, Liu Zhihu did not disclose the sales volume after the cooperation between I and T-Mobile. He only said: "The first goal of the first phase is to become the third high-end market in the United States. On the basis of current sales, we will increase millions of units."

In addition, after the cooperation with T-Mobile, one plus will also provide "the first 5G mobile phone in Europe" in the first half of next year. "Now the operators of Europe and the United States in the 5G layout should be slightly faster, coupled with Qualcomm's support, next year must be the first batch of 5G products released overseas." Last month, Liu Zuohu based on the 5G network in the laboratory environment, The world's first 5G Twitter was launched, making it one of the first mobile phone brands in the world to successfully use 5G networks.

"difficult" US market

The United States is known as the world's highest mobile phone market, and Chinese mobile phone manufacturers often have difficulties when they enter.

In the US mobile phone market, although ZTE’s mobile phone has achieved good results – it ranked fourth in the first quarter of this year, but the April incident caused ZTE’s business to be almost completely stopped for nearly three months. Now, although the embargo has been lifted, the incident will undoubtedly have a lot of impact on ZTE itself and its upstream and downstream enterprises and related industries. At the ZTE temporary shareholders meeting at the end of August this year, ZTE CEO Xu Ziyang said when talking about the US market, after the ban, ZTE is still observing and researching whether the US market can recover normally, and reorganizing the R&D and sales of the US market. .

Lenovo and TCL and other brands that have acquired Motorola and hope to explore the international market have already entered the US, but according to the statistics of Cheetah big data, the main products of Chinese brands in the US market still belong to the low-end category: "From these brands In terms of the penetration rate of cities in the United States, most cities ranked first (permeability) are not first-tier cities in the United States."

Since the second quarter of this year, Huawei has surpassed Apple to become the world's second-largest smartphone supplier for two consecutive quarters. If you want to expand further, the US market can be said to be a huge cake, but it is still difficult to enter the US market. At the end of last year, Huawei's consumer business CEO Yu Chengdong said in an interview with the media that Huawei will enter the US market in 2018 and cooperate with US mobile operators to launch mobile phone products. Unfortunately, the US operator AT&T suddenly gave up its plan to sell Huawei mobile phones. At the same time, many telecom companies and retailers also refused to cooperate in selling Huawei mobile phones.

Huawei's flagship new Mate 20 series has also confirmed that it will not land in the US market. A Huawei spokesperson said that although the Mate 20 series may appear on some US retail websites, it is basically a European or Asian version and may not be compatible with the US carrier network.

Not only Huawei, but the top five mobile phone brands in China are hard to enter the US market. Xiaomi also only opened an online store to sell peripheral accessories such as headphones and batteries. Of course, Lei Jun once said that the internal time has begun to have a corresponding timetable, hoping to succeed in the North American market.

Liu Zuohu said to the media including reporters that it is very difficult for smartphone manufacturers to enter the US market. "The cooperation with US operators is usually divided into three phases: negotiation, internal testing and acceptance of operator testing. The process takes about a year. Before the mobile phone is listed, it needs to pass the US National Access Certification (FCC), third-party certification, and the operator's online measurement; the changes involving the product version need to go through the process once again. Quality issues may even go directly to the operator's ban on 'blacklisting'.

However, in the view of Wang Yanhui, secretary-general of the China Mobile Alliance, "Zhongxing, TCL and Lenovo have been working in the United States for many years, and they have also accessed US carriers. For Huawei and Xiaomi, it is only a matter of time before the problem is solved. solved".

Article source: Daily Economic News

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