Mobile Phone Market: China's prospects strong with 5G coming

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As 5G networks and their devices pop up across China and around the world, one market report has found that the global high-end smartphone market shrank by a staggering 8 percent in the first quarter. So what does that mean for the rest of the market, and who will take the lead, as this new era in communication begins? CGTN reporter Omar Khan looks for some answers.

With the smartphone landscape moving even closer to 5G, many anticipate a fresh wave of breakthrough technology. Faster speeds, better cameras for those beloved selfies, and new designs. But for both the global and Chinese smartphone markets, the numbers suggest a more toned down outlook.

YAN ZHANMENG RESEARCH DIRECTOR, COUNTERPOINT "It's true that in recent years both markets have seen smaller growth, and even a decline at times. In fact, the Chinese market belongs to a seasonal and mature market on the global scale. When it comes to the replacement of phones, this impacts the growth of users, being relatively small or even seeing a decline."

According to market research firm Counterpoint, the first quarter of this year witnessed a steady 5 percent decline in global smartphone shipments, marking a 6th consecutive quarter headed towards this trend.

But that somewhat bleak outlook doesn't bode true with Chinese tech-giant Huawei.

YAN ZHANMENG RESEARCH DIRECTOR, COUNTERPOINT "Over the last two years Huawei's rapid growth can be attributed to the company's dual-brand strategy. It's indeed grown significantly, and especially when it reaches the first quarter, it should surpass Apple."

By Q1 2019, Huawei had surpassed Apple with a global market share of 17 percent, inclusive of its Honor brand. A year ago, the Shenzhen-based firm lagged behind Apple, yet despite the ongoing China-U.S. trade war, the company is now even managing to slowly creep up on Samsung. Huawei's efforts in R&D and 5G could be propelling the company's growth.

PARTICIPANT WORLD MOBILE CONFERENCE "If you take a look at the worldwide development of 5G, the clear focus and the clear frontrunners are in the Chinese market and in the Asian market. All new trends and all new technology leads are upcoming there."

YAN ZHANMENG RESEARCH DIRECTOR, COUNTERPOINT "In terms of scientific innovation, Huawei is a global leader at the 5G level. There are two reasons for this. First is that the company has focused on communication technology for a long time, from 2G all the way to 5G. And second, Huawei has created cooperation with upstream and downstream partners in the R&D field."

With 5G networks now beginning to commercialize in China, and with the rollout of 5G devices just around the corner, the global smartphone market is poised to see far-reaching changes in the near future. Omar Khan, CGTN, Guangzhou.