Following the release of the iPhone 6 coupled with less-than-expected 4G developments in China, handset vendors in China anticipate limited 4G handset shipments throughout the end of 2014 into the second quarter of 2015.

Handset vendors in China had aggressive plans to push 4G handset sales in the country but as subisidies from local telecom vendors ended coupled with factors such as lagging awareness of the technology and consumers waiting for the iPhone 6, they witnessed less-than-expected 4G shipments, a trend that is expected to wither into 2015.

Supply chains do anticipate orders for the technology throughout the end of 2014 but believe the vast majority of orders will not come until the first and second quarters of 2015 when vendors prepare to release new units in the second and third quarters of 2015.

China handset supply chain makers such as Kuangli Photoelectric Technology meanwhile have seen their utilizations drop as the trend occurs, with Kuangli's dropping from 95% in the second quarter of 2014 to 60% in the third quarter. The company reportedly expects the percentage to bounce back to 80% by the fourth quarter of the year.

Digitimes Research meanwhile said major China-based handset vendors including Coolpad, Lenovo and Xiaomi Technology are unlikely to reach their shipment goals set for 2014 due to slow sales of 4G models in the third quarter and gloomy prospects for the fourth quarter.

Coolpad shifted its entire production lines to the production of 4G models in the first half of 2014 and ramped up its 4G smartphone shipments during the January-April period, resulting in a pile-up of 4G models in retail channels. Coolpad reduced its orders for upstream suppliers sharply after suffering flat sales in the third quarter.

Lenovo began to offer 4G models at the end of the second quarter but failed to ramp up 4G shipments in the third quarter due to an excessive stockpile of 3G models in the first half of the year. The vendor has since turned more conservative about the prospects for the fourth quarter.

Affected by slower than expected sales of 4G models in the third quarter, Xiaomi also saw its shipment momentum begin to decelerate in the quarter after its shipments and position in vendor rankings advanced significantly in the first half.

Digitimes Research added it believes that the smartphone market in China has reached its peak period for the year and that efforts by China-based telecom operators to boost 4G smartphones in the fourth quarter would be limited.