This paper focused on understanding the reasons why major smart phone companies have been changed and on deducing Korean companies’ countermeasures in terms of imitation and innovation. Local companies have enhanced market share, whereas foreign capital companies have lost the competitive power gradually in smart phone market in China. If Korean companies give up smart phone market in China, they will lose the largest market in the world. Chinese companies have caught up with the technology fast through the imitation and have boosted the competitiveness through the continuous communication with consumers in China. Now it is time for Korean companies to benchmark local companies that surpassed the foreign capital companies. In a bid to improve the competitive power in China, Korean companies can take the following measures: 1) They need to enhance the image by holding the differentiated function with Apple in high price market. 2) They need to level up agency’s loyalty by level up by guaranteeing agents’ stable profit margin especially in small and medium size cities. 3) They also need to develop smart phone which Chinese consumers like through the thorough market survey. 4) They need to develop and upgrade software as well as hardware by developing Apps that Chinese consumers like.