Chinese Smartphone Market, World's Largest, Shrinks In First-Quarter: Study

[Ron Burgundy]

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". 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 [XTC.UL], 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.

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