Six Chinese companies made it into the global smartphone top 10

Foreign media said that smartphones made in China and priced at around $100 are sweeping the world market. In the second quarter, China's six largest players expanded their share of the world market to about 30%, putting pressure on the performance of industry leaders such as South Korea's Samsung Electronics. Chinese companies have introduced the "small profits, big sales" strategy used in selling PCS and ultra-thin TVS to the smartphone market. Japanese companies are also facing tough times.

The media published an article entitled "China's Smartphones take the World by storm" on August 5. According to the recent statistics released by Taiwan research company Chubang Technology, the market share of Beijing-based Xiaomi Technology company rose to 4.5% in the second quarter, up 0.4 percentage points from the previous quarter, surpassing SONY for the first time and ranking sixth in the world. SONY ranked seventh with 4.4 percent of the market. Xiaomi's "Red Rice" phone costs just 699 yuan.

Chinese companies account for six of the world's top 10 smartphone makers, followed by Lenovo Group and Huawei in third and fifth place. The six companies share about 28 percent of the global market, up from about 16 percent in 2012, and close to Samsung's 31.4 percent. Samsung reported its first drop in revenue and profit in nine years in the second quarter as it struggled with price competition from Chinese companies.

Although Chinese companies are less capable of developing IT products than their counterparts in Japan, the United States and South Korea, they are rapidly expanding their market share, mainly thanks to Taiwanese companies.

Mediatek is a leading manufacturer of LSI(large-scale integrated circuits), the brain of smartphones, while Taiwan Integrated is the world's largest professional integrated circuit manufacturing service company. By collaborating with Taiwanese companies on other companies' patents, Chinese companies have slashed costs, producing products that are 30 to 50 percent cheaper than those of industry leader Qualcomm of the United States.

Low-cost smartphones made by Chinese companies are increasingly making inroads into emerging markets such as Southeast Asia and South America. Shipments of lower-priced smartphones priced under $200 are expected to rise to about 440 million units in 2014, up 43% from the previous year and giving them 37% of the market, according to a report by NPD Group, a Canadian market consultancy. As a result, shipments of high-end smartphones priced at more than $400 are expected to decline for the first time by 6 percent to 394 million units.

Japanese companies will face tougher times ahead, thanks to the rise of low-cost smartphones. In late July, SONY, Japan's top smartphone seller, cut its 2014 sales target to 43 million units from 50 million. The company had forecast a profit of $260 million, but now expects to break even.

On the other hand, domestic electronics component champions are targeting low-cost smartphones. In addition to supplying smartphone makers, some companies are trying to get involved in Mediatek's designs for Chinese companies. Companies are vying to partner with Mediatek.