Not like old days, the global need for smartphone slow down in recent years especially in 2015, and some of China mobile phone brands are experiencing a tough period to get more orders even no orders. Under the pressure that the usage of cell phone production line is low, more and more mobile phone brands join the ranks of OEM manufacturers, competing with other traditional phone design OEMs.
Practitioners in the mobile phone field says, in 2015, besides Huawei is striving for the best of smartphone suppliers, other top three traditional China mobile phone manufacturers including ZTE, Coolpad and Lenovo, are losing their smartphone market share and just turning to OEM smartphone ranks.
Among the three, Coolpad is the first to find a way to become an OEM manufacturer for high value-added smartphones. In 2014, it cooperates with Qihoo 360 and manufactures smartphone for the latter. Last month, QiKU phone was released in Beijing and started for sale in next few days. In 2015, Coolpad reaches LeTv and wants to manufacture following generations of LeTV smartphones. With excellent mobile phone supply chain ability and facing the pressure of idle capacity, Coolpad decides to join the ranks of smart phone design and OEM manufacturers.
ZTE and Lenovo are experiencing the same problem of idle capacity pressure, so both take action in 2015 to compete for OEM phone orders. It really surprises mobile phone supply chain practitioners who have indicates the reason why local China mobile phone suppliers start to manufacture smartphone for other brands one after another: the traditional China phone manufacturers rise sharply along with the golden age of the whole Chinese phone market changes from functional cell phone to smart phone. The shipment of every mobile phone manufacturer peaked fast. But as the competition becomes stronger and the specifications of smartphone upgrades, the local China mobile phone manufacturers are losing competitive edge.
Though Coolpad, Lenovo and ZTE lose the battle of the high-medium smartphones, they still have mobile phone development technology and manufacturing strength to help those new mobile phone practitioners who want to expand brand popularity.
It is inevitable that more and more local mobile phone manufacturers will join the ranks of OEM manufacturers.