China users going for larger smartphones, likely to upgrade to iPhone 6

Source: IDC. Fok.

Smartphones with larger screens are on China's wishlist, says Kitty Fok, IDC China Managing Director. Sharing her views on the Chinese smartphone market on video, Fok said that the China market is seeing increased adoption of smartphones with screens of 5" to 7". These now account for more than 20% of total smartphones bought in 2013, and the proportion is expected to increase. 

The way Chinese people use smartphones has changed, especially among the younger generation who use smartphones less for voice communication and more for digital applications such as text, video, game, and shopping, Fok explained. In tier 4-6* cities in China, where PCs and tablets may be uncommon, smartphones are often the only devices that people can use to communicate with each other and for entertainment; larger screens are more attractive here.

Source: IDC. User characteristics of users from tier six cities versus urban user needs.

While local smartphone manufacturers are providing consumers with large-screen smartphones at more affordable price points than international brands, IDC is expecting a replacement wave for Apple's installed base market in China with the launch of the new iPhone. 

People are using smartphones more for digital applications than for voice, Fok said. Smartphone manufacturers will therefore need to think of how they can attract customers with other features, such as a high resolution, good camera, or easy-to-use text input system.

*Tier definitions vary, but depend on a combination of economic development, provincial GDP, available infrastructure, and historical significance. Tier 1 cities typically refer to Beijing, Shanghai, Guangzhou, and Shenzhen. Second-tier cities include Tianjin and Chongqing, plus provincial capitals: Chengdu, and Wuhan among them. Third-tier cities may be prefectural cities, while county level cities might be in tier four.