Strategy Analytics: China Will Overtake United States as World's Largest Mobile Phone Market by Revenue in 2014

BOSTON, May 28, 2014 /PRNewswire/ -- According to the latest research from Strategy Analytics, mobile phone sales will reach 430 million units and generate revenues of US$87 billion in China during 2014. In contrast, mobile phone sales will stabilize at 163 million units and deliver revenues of just US$60 billion in the United States this year. China will overtake the United States for the first time ever to become the world's largest mobile phone market by value.

Linda Sui, Senior Analyst at Strategy Analytics, said, "We forecast mobile phone sales to grow 15 percent annually to reach a record 430 million units in China during 2014. Mobile phone trade revenues will surge 53 percent annually to reach a record US$87 billion this year. In contrast, mobile phone sales in the United States will grow zero percent annually, while trade revenues will increase only 4 percent to US$60 billion in 2014. China will finally overtake the United States for the first time this year to become the world's largest mobile phone market by value."

Woody Oh, Senior Analyst at Strategy Analytics, added, "China's impressive mobile growth is being driven by the country's rapid shift to 3G and 4G smartphones. Major brands, such as Samsung, Huawei and Lenovo, are aggressively expanding their distribution channels and product ranges across the region to meet extremely strong demand from Chinese consumers for more advanced mobile phones."

Neil Mawston, Executive Director at Strategy Analytics, added, "The United States is maturing and has now lost its crown to China as the world's largest mobile phone market by revenue. However, it is important to remember the US remains by far the mobile industry's most valuable country by profit. 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."

Exhibit 1: Mobile Phone Sales and Trade Revenues by Country in 2014¹

¹ Numbers are rounded. Trade revenues are defined as wholesale revenues. The 2014 data are forecast estimates.

The full report, BRIC Country Handset Revenue Forecasts: 2009 to 2020, is published by the Strategy Analytics Wireless Device Strategies (WDS) service, details of which can be found here: http://tinyurl.com/oh3dz25.

About Strategy Analytics:

Strategy Analytics is a global, independent research and consulting firm. The company is headquartered in Boston, USA, with offices in the UK, France, Germany, Japan, South Korea and China. Visit www.strategyanalytics.com for more information.

USA Contacts:

Linda Sui / +1 617 614 0735 / [email protected]

Asia Contact:

Woody Oh / +44 1908 423 665 / [email protected]

Europe Contact:

Neil Mawston / +44 1908 423 628 / [email protected]

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SOURCE Strategy Analytics