(Yicai) Jan. 15 -- Smartphone manufacturers in China have launched a new round of product structural adjustments because of the rising prices of memory chips and continuously growing supply chain costs.

"The price increases in storage and supply chain over the past year have had the most significant impact on phones priced below USD100," an analyst at tech research firm Omdia told Yicai. "Such pressure may continue this year, further affecting manufacturers' product pricing strategies and shipment schedules."

Global phone shipments stood at about 900 million units in the first nine months of last year, with Chinese brands accounting for over 60 percent of the total, according to data from Omdia. Although entry-level products still have the largest overseas market share for Chinese manufacturers, relevant profitability is being significantly squeezed due to the continued rise in the cost of key components, including memory chips.

Chinese handset manufacturers "previously relied primarily on low-cost models to achieve scale, but now they are focusing more on adjusting product structures," the analyst noted, adding that they have continued to gain market share overseas over the past year, but their competitive strategies and target price segments are undergoing significant changes.

Among the major brands, Honor was the fastest-growing Chinese brand overseas in the first three quarters of last year, the analyst pointed out. Its sales jumped 55 percent from a year earlier, mainly driven by growth in the Middle East, Africa, and Southeast Asia, he said.

"Honor did not focus its expansion efforts on the entry-level market like most Chinese manufacturers, but instead targeted products in the USD300 to USD500 price range," the analysts said. "Shipments of such products accounted for 23 percent of its total overseas last year, leading other major Chinese manufacturers."

The Honor X9's overseas sales more than doubled compared to the previous generation X9b, while that of the Honor 400 series surged about 86 percent compared to the Honor 200 series, the analyst noted.

Other Chinese phone makers are also adjusting their product structures, with Oppo Mobile Telecommunications shifting from its previous focus on the entry-level market around the USD200 price range to introducing more mid-to-high-end fourth-generation mobile technology products in certain developing markets, he pointed out.

In addition, Xiaomi is enhancing its brand image and lifting the proportion of mid-to-high-end products in Southeast Asia and Western Europe, while Vivo Communication Technology is strengthening its presence in the Southeast Asian market while boosting investment in North Africa and Latin America, particularly in Brazil, he added.

In addition, Shenzhen Transsion Holdings, which has been significantly impacted by the growing price of storage raw materials, is leveraging financial tools such as installment payment options to help consumers reduce payment barriers and maintain shipments to emerging markets.

The new round of reshuffling in the global smartphone market may have just begun due to the combined effects of growing storage prices and increasing supply chain costs, said Ryan Reith, program vice president at International Data Corporation's Worldwide Mobile Device Trackers.

Editors: Tang Shihua, Martin Kadiev