China's mobile phone is a long way to go American operators do not feel bad about new OEM brands
[Global Network Technology Reporter Chen Jian] There's no doubt that Chinese smartphone manufacturers have become major players in the global market, especially in regions like India, Russia, and Africa. They enjoy strong popularity in these areas, but when it comes to the U.S. market, their success is still a long way off.
"Globally, China's smartphone OEMs hold over 43% of the market share, but only 18% in the United States," said Jeff Fieldhack, research director at Counterpoint.
Some reports suggest that companies like ZTE and Alcatel have made it into the top five among U.S. carriers, with a solid presence in prepaid channels. Lenovo remains a well-known supplier for Verizon. However, other Chinese brands are still struggling to gain traction in the open U.S. market. Why are companies like OPPO, Vivo, and Huawei pushing so hard to establish themselves in the U.S.?
According to Fieldhack, "In the U.S., telecom operators still dominate the market. Verizon Wireless leads with 147.2 million users (Q2 2017), followed by AT&T Mobility with 138.8 million users (Q3 2017), and T-Mobile US with 70.7 million users (Q3 2017)."
New entrants in operator-controlled markets face significant challenges. Operators control around 70% of sales in the U.S., and they aren't keen on supporting new OEM brands.
U.S. operators worry that new OEMs lack the capability to effectively promote their products. If these brands end up facing numerous lawsuits, the operators would also be burdened with handling legal issues and product returns. The U.S. market is already saturated, making it expensive to enter and easy to get overshadowed by established competitors.
Moreover, as a mature market, more than 50% of the U.S. smartphone market is controlled by Apple and Samsung. To break into the top five, Chinese brands need a combination of high-quality hardware and strong marketing strategies to attract users and shift them from one ecosystem to another.
U.S. experts also emphasize that entering the American market requires years of patience and investment. Trying to partner with just one or two carriers is unlikely to lead to success. Instead, the report suggests that Chinese companies should gradually build local support and invest in R&D, slowly expanding through smaller, more competitive channels. This approach could help them gain a foothold in the long run.
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