The global information industry is undergoing a wave of transformation, following the peak brought by smartphones. As the next major shift approaches, new opportunities are emerging across the market. Photo / Associated Press, Xinhua News Agency.
"I don't understand, this world is changing fast" — these words capture the rapid evolution that has taken place since China's reform and opening up, as well as the broader changes driven by the information revolution. The information revolution has unfolded in waves, and after the smartphone boom, we're now witnessing another phase of change.
Emerging markets are becoming a key driver of growth, with increasing business opportunities and bidding activity. From the early days of personal computers to the rise of wireless networks and smartphones, communication technology has deeply integrated into our high-tech lives. As products evolve and meet consumer needs, the market moves from product upgrades to widespread adoption.
For instance, in the global smartphone market, the share of emerging markets (excluding China) grew from less than 40% in 2012 to over 670 million units in 2016, accounting for 46.5%. This is expected to reach 50.7% in 2017, with 850 million units. Similarly, tablet shipments to emerging regions increased from 37.6% in 2012 to 54.5% in 2015, though growth was constrained by flat panel demand. Meanwhile, in the slowing desktop PC market, the share of emerging markets in notebooks remains around 70%, while competition from tablets has slightly reduced this share.
This trend shows that the focus of telecom product shipments is shifting toward emerging markets, pushing Chinese brands like Huawei, Xiaomi, and Lenovo to expand globally. These markets are dominated by low-cost smartphones and tablets, which are replacing traditional PCs. Eventually, these cost-effective options will influence mature markets, meeting the needs of price-sensitive users who prioritize affordability over high-end features.
Mergers and acquisitions have become a common strategy in the industry. As markets mature, companies face slower growth and intensified competition. Smaller players struggle to compete, leading to consolidation. Major firms like Dell, EMC, and Avago have made significant acquisitions, reshaping the industry landscape. In Asia, MediaTek acquired several companies, while Sun Moonlight expanded its presence, attracting attention from global players.
However, large corporations often overlook niche markets. Companies like MSI, Xiaomi, and Micromax have found success by targeting specific segments, such as e-sports PCs or India’s growing mobile market. These strategies allow them to thrive without direct competition from big players.
Looking ahead, as high-tech products become more mature and widely adopted, there are still many opportunities for Taiwanese companies. However, three key challenges remain: low brand awareness, an over-reliance on China's supply chain, and limited recognition in overseas markets. To address these, Taiwan must deepen local strategies, build stronger partnerships, and integrate more closely with local ecosystems.
To succeed in emerging markets, Taiwanese industries should consider:
1. **Market Joint Ventures**: Collaborating with local distributors and brands can help overcome the lack of brand recognition and open new business opportunities.
2. **Industry Complementarity**: By aligning with local supply chains and leveraging government support, companies can create sustainable growth and tap into policy incentives.
3. **Co-creation of Opportunities**: Through close collaboration and customization, Taiwanese firms can enter niche markets and develop products tailored to local needs.
As the global high-tech market slows down, the industry is consolidating, but it also presents new chances for those who can adapt. The next wave of growth lies in localized innovation and smart positioning. For Taiwan, this could be a turning point to break free from traditional structures and find new paths for development.
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