BEIJING, Nov. 26 /Xinhua-PRNewswire/ -- 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 phone market in 2007Q3.
CCID Consulting’s Analysis Report on China’s Mobile Phone Market in 207Q3 showed that both the sales revenue and sales volume of China’s mobile phone market descended over 2007Q2. The sales volume reached 35.262 million sets, descending 9.8% over 2007Q2, while the sales volume reached 39.55 billion Yuan, descending 9.3% over 2007Q2. 2007Q3 is the off-season in 2007. As for the accrual, on one hand, there is no busy sales season like the Chinese New Year; but on the other hand, the purchase quantity of dominant consumer groups such as students is limited. As for promotions, the manufactures’ new product launches and promotions are not as large-scale as in the first two quarters of 2007.
Although the sales volume of mobile phones is descending in 2007Q3, it has rapid growth over 2006Q2. Mobile phone manufactures expand to the low-end products and excavate new users; segment market is deepening, product functions upgraded rapidly, 3G business previews and a new round of replacing new mobile phones drove the rapid growth of the market. The customization and low charge of mobile operators is a direct factor that is driving the steady growth of China’s mobile phone market.
Figure 1: The Sales Circs of China’s Mobile Phone Market in 2007
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Source: Oct. 2007, CCID Consulting
Multimedia Mobile Phones are Gradually Maturing; New Product Applications are Prominent
Mobile phones’ functional characters drive the development of 3C convergences. Fashion designs and functionality are radically deciding the mobile phones’ competitive characteristic -- diversity. And the diversity of the mobile phone market in 2007Q3 behaves with the following aspects:
Mobile Phone Collocation Upgrades
The number of mobile phones with high resolution and large-sized TFT is increasing. The memories and storage capacities of mobile phones are expanding. Cameras, MP3s and MP4s have become the standard collocation of medium and high-end mobile phones. Meanwhile, the cameras’ pixel quality is advancing; one and two million pixels have become the mainstream. And mobile phones with seven million pixels have come to market, which has brought new competition for digital cameras. Mobile phone TV products have also increased. At present, mobile phones with TV video number over one hundred kinds. Domestic manufactures such as Lenovo, Amoi and Dopod enlarge the product line of mobile phone TV, and other domestic manufactures launched their own mobile phone TV products in succession. Mobile phone TV will become the next competitive hotspot.
New Product Applications are Outstanding.
The rapid development of the global communications industry has driven the value chain of the mobile communication industry to transfer to the operation. Because of consumers’ rich demands and more and more value-added services, terminal manufacturers are paying more attention to mobile phone applications. Equipped with electronic purses, WiFi, Push-mail, digital TV, GPS navigation, information security and NFC/RFID, the sales volume of GPS navigation mobile phones reached nearly 1% in 2007Q3.
The Number of 3G Mobile Phones Increases.
The rapid development of the 3G industry has driven China’s 3G industry to enter essential development. Various 3G terminal products were launched one after another in the second half of 2007. The dual mode and multi-mode products of GSM and WCDMA have been sold. Under support from national industry policies, TD-SCDMA terminal chips and product marketability have developed rapidly. The increase of TD-SCDMA’s and GSM’s dual mode manufacturers redounds to the development of TD terminal products.
Market Share of China’s Domestic Brands Increases
In recent years, the degressive threshold of mobile phone designs and produce and the cancellation of the mobile phone approval system have brought new opportunities for domestic manufacturers. The market share of domestic manufacturers has increased over 2007Q2. The market share of domestic mobile phones ascends to 33.4% in 2007Q3. Depending on the low price, fashionable design and variety of applications, domestic manufacturers such as K-Touch, Gionee and Telda search out new opportunities in the county market and below the county market. And the foreign manufacturers’ contractive strategy in China’s mobile phone market brings more space for domestic manufacturers.
Depending on the advantages of product, channel and promotion and the tie-in sales, the sales volume of Nokia maintained an increase in 2007Q3, however, under competition with Samsung, Sony Ericsson and numerous SMEs, its market growth is not obvious. The market share of Motorola is declining in 2007, but its second position is difficult to shake in the short term. With the adjustment of development strategy and product strategy, Motorola leaves not so much time to other manufacturers.
The whole market share of the second camp manufacturers such as Samsung, Lenovo, Sony Ericsson, Bird, Amoi is 30%. Being restricted with the capital strength, brand influence, product positioning, sales scale and channel promotion, the second camp will find it difficult to climb rapidly.
Figure 2: The Competitive Structure o China’s Mobile Phone Market in 2007Q3
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Source: Oct. 2007, CCID Consulting
CCID Consulting forecasts that China’s mobile phone market will enter a new summit in 2007Q4. The growth rate of sales volume reached 13% and the growth rate of sales revenue reached 12%. The launch of mainstream manufacturers’ new products in the second half of 2007 is more than those in the first half of 2007 and new products depreciate rapidly which attracts consumer purchases. Q4 is the economy harvest period for consumers, so the purchase demands will be preferable in Q4. The mobile phone is the first choice for consumers. With the cancellation of the mobile phone approval system, more and more enterprises will produce mobile phones. All of these factors above are in favor of the growth of market scale.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as "CCID Consulting" or "CCID"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company’s business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
