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SmartPhone Battle – Improved Processing, Graphics and Video, Network Apps

August 3rd, 2012

With the innovated iPhone 4S consumers are going crazy about the new touch interface with high speed processor giving true multimedia communication power in your hands.

The wireless handset market is heading into a battle over graphics/video and processing performance is coming to the fore as a key differentiator. The iPhone 4S launch in Asia and China has put both the Chinese cottage phones and hyperfragmented – Android” markets into greater disarray. But, as these battles escalate, far greater discipline and strategic planning for everything, from supply chain to distribution management, is required as the economics of 3G becomes uglier and more complicated. While Huawei and ZTE have nearly doubled their smartphone market shares in China off graphics performance, our channel checks suggest that TD-SCDMA (not TD-LTE) unit shipments have also started to pick up across both MediaTek and Spreadtrum.

China Unicom offering a free iPhone 4S for a multi-year contract will only be short-lived against the challenges of channel management coming and channel checks show price competition already heating up.

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