Russian Smartphone YotaPhone set to conquer China

Posted on November 5, 2015 by Nikhil P Naik

Yota reported one of the biggest operations of entering the Chinese market in the field of advanced consumer electronics, in the history of Russia. Thanks to the agreement with Potevio , Chinese state-owned company, Yotaphone 2 will also be sold in China.

The Russian-made YotaPhone, which that nation’s president, Vladimir Putin, has called his country’s answer to the Apple iPhone, has stalled in its sales, however the organization behind it is eagerly anticipating a discovery of a more richer ground in China.

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In addition to marketing the revolutionary smartphone in the Chinese territory, the agreement with Potevio provides a strong marketing support to present Yotaphone 2 to Chinese consumers. Potevio is among the three largest distributors of mobile technology in China, with 36 million products sold in 2014 and annual revenues that you wander around the 46 billion yuan ($ 7.3 billion).

In spite of an idealistic focus of 1 million gadgets devices shipped globally, Yota just saw 100,000 devices shipped last year. Martynov said in an interview with Bloomberg News, “We look at China and the U.S. and we realize that we have a better chance to succeed with YotaPhone 2 in China than in the U.S. at this time.”

Now, Yota Devices is hoping that China’s booming consumer economy will make a receptive market for its device. The CEO of Yota, Vlad Martynov stated: “After President Putin exhibited a YotaPhone to President Xi Jinping, we got a large number of fans in China across the web on Social Media platforms.”

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On the other hand, if Yota needs to venture into China, it will confront some solid rivalry. Mark Tanner, founder of China Skinny, a Shanghai-based research and marketing agency noted: “They will be facing formidable local competitors who are able to provide quality products at competitive prices. In the event that it does become successful, it’s just a matter of few months before local manufacturers make clone of the device by implementing reverse engineering techniques.”

Research provided by IDC suggests that China’s smartphone industry may have crested; in spite of growing by 19.7% in 2014, the market is set to only grow by just over one percent in the year 2015.

Source – Bloomberg

About Nikhil P Naik

Nikhil Naik has finished his graduation in the field of IT and is currently mastering in Business Analytics and Information Systems. He also loves watching cricket, listening to music and aspires to be a Data Scientist. Twitter Handle - @buzz_nikhil.

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