Chinese smartphone market, world’s largest, shrinks

BEIJING, May 12 (NsNewsWire) — China’s smartphone market has reached saturation, according to a new study by industry analyst IDC that carries potentially significant implications for the global handset industry led by giants like Apple Inc and Samsung Electronics Co Ltd.

During the first quarter of 2015, smartphone shipments in the world’s most populous country shrank for the first time in six years to 98.8 million, down 4.3 percent from a year earlier, IDC said in report on a Monday, attributing the slump to “market saturation”, reports Reuters.

The rise of Chinese consumers has fueled booming demand for smartphones in recent years, lifting firms including Apple – which made a record $16.8 billion in revenue in China last quarter thanks to its iPhone 6 series launch – and Beijing-based Xiaomi, which grew into a $46 billion company in just four years.

China overtook the United States in 2011 to become the world’s largest smartphone market.

But IDC’s data suggesting that a slowdown has already begun could pose questions for the industry.