China expected to overtake US in mobile revenue

29 May 2014

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The balance of power is swinging and not just in terms of politics. New reports show that the US will soon no longer be the biggest mobile market, China will.

According to the Wall Street Journal, China will see the largest revenues gained in mobile sales worldwide later this year, surpassing its western rival for the first time, according to Boston-based research group, Strategy Analytics.

Going by their figures, China will see an increase of 15pc this year in the number of mobile phones sold this year to 430m in tandem with the country’s major push from 3G broadband to 4G which it expects will lead to the significant increase by 53pc over the US in revenue to the tune of US$87bn by the end of 2014.

Meanwhile, Strategy Analytics see the US mobile phone sales estimates to level off at 163m handsets in the same period with a revenue increase of just 4pc to US$60bn.

Despite this, the US will still remain the most profitable nation to sell mobile phones in the world as they continue to push the more up-market handsets in comparison with China, and Asia as a whole, where the developing markets have been quick to acquire the more affordable models.

Speaking of this important considering factor, Neil Mawston of Strategy Analytics said: “High average selling prices for mobile phones and huge operator subsidies from Sprint and others continue to make the US a very profitable market for major device brands such as Apple, Samsung and Alcatel.”

China mobile image via Shutterstock

Colm Gorey is a journalist with Siliconrepublic.com

editorial@siliconrepublic.com