Six Chinese companies have made it into the top ten of the global smartphone market.

Foreign media report that smartphones produced in China at a price of only about $100 are sweeping the global market. In the second quarter, the market share of the six major Chinese manufacturers in the world market has expanded to approximately 30%, exerting significant pressure on the performance of industry leaders such as South Korean Samsung Electronics. Chinese enterprises have introduced the "low-price, high-volume" strategy used in the sales of personal computers and ultra-thin TVs into the smartphone market. Japanese enterprises are also facing a severe situation.

On August 5th, a certain media published an article titled "Chinese Smartphones Dominate the World Market", stating that the statistics recently released by Taiwan-based research company TrendForce showed that in the second quarter, Beijing-based Xiaomi Technology Company's market share rose to 4.5%, increasing by 0.4 percentage points compared with the previous period, and it surpassed Sony Company for the first time, ranking sixth in the world. Sony's market share was 4.4%, ranking seventh. The "Redmi" mobile phones produced by Xiaomi Company cost only 699 yuan per unit.

Among the top ten smartphone manufacturers in the world, Chinese enterprises account for six of them. Among them, Lenovo Group and Huawei Company rank third and fifth respectively. These six companies have a market share of approximately 28% in the global market, which has significantly increased from about 16% in 2012 and is approaching Samsung's 31.4%. Due to the price competition from Chinese enterprises, Samsung experienced a decline in both revenue and profit for the first time in nine years in the second quarter.

Although the information technology product research and development capabilities of Chinese enterprises are not as strong as those of Japan, the United States and South Korea, their market share is expanding rapidly, mainly thanks to Taiwanese enterprises.

Taiwan's MediaTek is the leading manufacturer of LSI (Large Scale Integrated Circuit) components for "smartphones", while Taiwan's Semiconductor Manufacturing Company is the world's largest professional integrated circuit manufacturing service enterprise. Chinese enterprises, by leveraging the patents of other companies and collaborating with Taiwanese enterprises, have significantly reduced costs and launched products that are 30% to 50% cheaper than those of the industry leader, Qualcomm from the United States.

Low-priced smartphones produced by Chinese enterprises have been gradually entering emerging markets such as Southeast Asia and South America, and their offensive momentum is becoming increasingly strong. The Canadian market research firm NPD Group released a report stating that it is expected that the shipment volume of low-priced smartphones priced under $200 will increase to approximately 440 million units in 2014, a 43% increase compared to the previous year, and the market share will reach 37%. As a result, it is predicted that the shipment volume of high-end smartphones priced above $400 will decline by 6% for the first time, to 394 million units.

Due to the emergence of low-priced smartphones, Japanese companies will face an even more challenging situation in the future. At the end of July, Sony, the top-selling smartphone company in Japan, lowered its 2014 sales target from the original 50 million units to 43 million units. Previously, the company had expected a profit of 260 million US dollars, but now it estimates that it will only break even.

On the other hand, the leading electronic component companies in Japan are eyeing the business opportunities in low-priced smartphones. Besides supplying components to smartphone manufacturers, some companies are also attempting to participate in the design provided by MediaTek to Chinese enterprises. All major companies are competing to collaborate with MediaTek.