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CCID Consulting Analyzes China's Mobile Storage Market in 2008Q3

2008-12-19 16:38 1904

BEIJING, Dec. 19 /PRNewswire-Asia/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's mobile storage market in 2008Q3.

In Nov. 2008, CCID Consulting's data shows that in 2008Q3, the performance of China's mobile storage market was weak, with sales revenue going down significantly. The sales volume of mobile storage market in 2008Q3 reached 4.8769 million sets, and sales revenue reached 859 million Yuan.

CCID Consulting's consumer electronics industry research center considers that China's mobile storage market has following four characteristics:

Influenced by a Weak Market

Affected by the macro-economic environment and a traditional off-season and change in consumers' attention, demands from enterprises and individuals decrease, which results in the mobile storage market's depression.

CCID Consulting's data shows that the sales volume of flash disks in 2008Q3 reached 4.3707 million sets, up 45.2% year-on-year; the sales revenue reached 477 million Yuan, down 10.2% year-on-year. Since July 2008, Sandisk's large-scale price drop triggers further price cuts among other brands.

Figure 1: Sales Situation of China's Flash Memory Disk Market in 2008Q3

http://www.ccidconsulting.com/upload/14046.jpg

Source: CCID Consulting, Nov. 2008

CCID Consulting's data shows that the sales volume of China's mobile HD market in 2008Q3 reached 506,200 sets, down 0.9% year-on-year; the sales revenue reached 382 million Yuan, down 10.5% year-on-year.

Figure 2: Sales Situation of China's Mobile HD Market in 2008Q3

http://www.ccidconsulting.com/upload/14047.jpg

Source: CCID Consulting, Nov. 2008

Flash Memory Disk: Lenovo Benefited from the Olympics, Sandisk Entered Top 5

In 2008Q3, based on its cooperative partner, the sales volume of Lenovo's flash memory disk reached 1.2857 million sets, the largest market share, accounting for 29.4% of the total market.

Although China's manufacturers occupy absolute market share of flash memory market, but with Kingston and Sandisk adjusting their strategy in paying more attention to IT channel and pricing, the sales volume of Kingston reached 665,300 sets and the sales volume of Sandisk reached 255,700 sets.

Table 1: Brand Competition Structure of China's Flash Memory Market in

2008Q3

2007, Q3 2007, Q3 2008, Q3 2008, Q3 Annual

Rankings Brands Sales Market Sales Market Growth

Volume Shares Volume Shares Rate

(10,000 (%) (10,000 (%)

Sets) Sets)

1 Lenovo 47.76 15.9% 128.57 29.4% 169.2%

2 aigo 54.78 18.2% 98.77 22.6% 80.3%

3 Kingston 36.43 12.1% 66.53 15.2% 82.6%

4 Netac 49.29 16.4% 45.34 10.4% -8.0%

5 Sandisk 6.84 2.3% 25.57 5.9% 273.8%

Others 105.91 35.2% 72.29 16.5% -31.7%

Total 301.01 100.0% 437.07 100.0% 45.2%

Source: CCID Consulting, Nov. 2008

Mobile HD: Market Situation Unfavorable

In 2008Q3, Lenovo reported strong performance, but in general, China's mobile HD market declined. The lack of interest in both new products and old product upgrade lead to a decline in sales. Meanwhile, various assembly and OEM products' low price strategy bring great pressure to brand manufacturers.

Table 2: Brand Competition Structure of China's Mobile HD Market in 2008Q3

2007, Q3 2007, Q3 2008, Q3 2008, Q3 Annual

Rankings Brands Sales Market Sales Market Growth

Volume Shares Volume Shares Rate

(10,000 (%) (10,000 (%)

Sets) Sets)

1 Lenovo 11.54 22.6% 12.95 25.6% 12.2%

2 aigo 11.47 22.5% 9.71 19.2% -15.3%

3 Newsmy 8.17 16.0% 6.95 13.7% -14.9%

4 Benq 5.23 10.2% 4.27 8.4% -18.4%

5 Travelstar 5.23 10.2% 4.23 8.4% -19.1%

Others 9.44 18.5% 12.51 24.7% 32.5%

Total 51.08 100.0% 50.62 100.0% -0.9%

Source: CCID Consulting, Nov. 2008

Product Capacity Enlarges, Data Security Becomes Focus

Because of the rapid development of science and technology, flash memory disks with 4G, 8G and larger capacity were able to attract consumers' attention. At the end of 2008Q3, flash memory disks with 2G and 4G became the market mainstream. The market share of the flash memory disks with 2G accounted for 49.6% of the total market; the market share of the flash memory disks with 4G accounted for 24.7% of the total market. Mobile HD's product capacity has been growing rapidly, with 160G mobile HDs now becoming the mainstream, and 250G and 320G products expanding their markets. In 2008Q3, the market share of mobile HD with 160G and larger capacity accounted for 66.1%.

Currently, data security has become more and more important, leading to new development direction among storage space and portable mobile storage products. Many mobile storage manufacturers shift their R&D focus to products' anti-virus encryption, which will become a highlight in winning costumers.

Figure 3: Capacity Structure of China's Flash Memory Market in 2008Q3.

http://www.ccidconsulting.com/upload/14048.jpg

Source: CCID Consulting, Nov. 2008

Figure 4: Capacity Structure of China's Mobile HD Market in 2008Q3

http://www.ccidconsulting.com/upload/14049.jpg

Source: CCID Consulting, Nov. 2008

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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