Some China-based handset vendors are reviewing their previous policies of launching multiple models and instead will focus their R&D and marketing efforts on a limited number of flagship models in order to cope with ever-changing market conditions and enhance their controls over supply chains and production costs, according to sources at handset component supply chains.
First-tier China-based handset vendors such Lenovo, ZTE, Huawei and Coolpad normally launch 30-50 handsets, including feature phones and smartphones, a year to maintain sales momentum and market share, noted the sources.
This approach has made it difficult for most vendors to have a clear R&D and marketing focus, and to control and manage related supply chains. It also easily leads to inventory pile-ups, affecting management efficiency and profitability, the sources indicated.
To address these problems, Huawei, ZTE and Gionee are likely to limit the number of new models to be released each year to around 10 or slightly more with each model targeting a designated segment, added the sources.
However, Lenovo and Coolpad are likely to maintain their shotgun strategies for the release of new models in 2014, the sources contended.
Lenovo is currently offering Vibe-, P-, S- and A-family models for the high-end, enterprise, fashion and entry-level segments, respectively. Its latest high-end flagship model, the Vibe Z, comes with a Qualcomm Snapdargon 800 CPU, a 5.5-inch Full HD display targeting the CNY3,000 (US$494) segment. |