China mobile phone sales down to 35 million units in 3Q07, says CCID Consulting
The sales volume of mobile phones reached 35.262 million units in China in the third quarter of 2007, decreasing 9.8% from the second quarter, while sales revenues reached 39.55 billion yuan (US$5.3 billion), shrinking 9.3% sequentially, according to research firm CCID Consulting.
The busy sales season in China is usually during the Lunar New Year near the beginning of the year and the promotions and new product launches by manufacturers in the third quarter are not as big as those in the first two quarters, stated the research firm.
Although the sales volume of mobile phones decreased in the third quarter, it showed rapid growth compared to the second quarter of 2006. Mobile phone manufactures expanded to low-end products, tapping new users. Customizations and low fees charged by mobile operators are a direct factor that is driving the steady growth of China's mobile phone market, noted CCID.
More functionality
The number of mobile phones with high resolution and large-sized TFT displays is increasing. The memory and storage capacity of mobile phones is also expanding. Camera, digital musical and digital video functionality have become standard features in mid-range and high-end mobile phones. Meanwhile, 1- and 2-megapixel resolution cameras have also become the mainstream, according to CCID.
Mobile phone TV products have also increased and will become the next competitive hotspot, according to CCID. At present, mobile phones with TV video capabilities number over one hundred models. Domestic manufactures such as Lenovo, Amoi and Dopod have enlarged their mobile phone TV product lines, with other domestic manufactures following suit.
Number of 3G handsets increases
Various 3G terminal products were launched in China in the second half of 2007 with dual-mode and multi-mode GSM and WCDMA products having been sold. Under support from national industry policies, TD-SCDMA terminal chips and product marketability have developed rapidly.
China's domestic brands grab more market share
The cancellation of the mobile phone approval system in China has brought new opportunities for domestic manufacturers, stated CCID. The market share of domestic manufacturers in China's mobile phone market in the third quarter increased when compared to the second quarter, rising to 33.4%. Featuring phones with low price, fashionable design and a variety of applications, domestic manufacturers such as K-Touch, Gionee and Telda are seeking out new opportunities. And the the use of contract manufacturing by foreign manufacturers in China's mobile phone market brings more opportunities for Chinese manufacturers, noted the research firm.
Nokia's sales volume increased in the third quarter, however, with competition from Samsung, Sony Ericsson and numerous SMEs, its market growth was not obvious. The market share of Motorola declined in 2007, but its second place market share position will be difficult to shake in the short term. The total market share of Samsung, Lenovo, Sony Ericsson, Bird and Amoi amounted to 30%.
CCID forecasts that China's mobile phone market will enter a new peak in the fourth quarter of 2007. Mainstream manufacturers will launch more new products in the second half of 2007 than in the first half, stated CCID, noting that with the cancellation of the mobile phone approval system in China, more enterprises will produce mobile phones, which will also help encourage growth of the market.
source
The busy sales season in China is usually during the Lunar New Year near the beginning of the year and the promotions and new product launches by manufacturers in the third quarter are not as big as those in the first two quarters, stated the research firm.
Although the sales volume of mobile phones decreased in the third quarter, it showed rapid growth compared to the second quarter of 2006. Mobile phone manufactures expanded to low-end products, tapping new users. Customizations and low fees charged by mobile operators are a direct factor that is driving the steady growth of China's mobile phone market, noted CCID.
More functionality
The number of mobile phones with high resolution and large-sized TFT displays is increasing. The memory and storage capacity of mobile phones is also expanding. Camera, digital musical and digital video functionality have become standard features in mid-range and high-end mobile phones. Meanwhile, 1- and 2-megapixel resolution cameras have also become the mainstream, according to CCID.
Mobile phone TV products have also increased and will become the next competitive hotspot, according to CCID. At present, mobile phones with TV video capabilities number over one hundred models. Domestic manufactures such as Lenovo, Amoi and Dopod have enlarged their mobile phone TV product lines, with other domestic manufactures following suit.
Number of 3G handsets increases
Various 3G terminal products were launched in China in the second half of 2007 with dual-mode and multi-mode GSM and WCDMA products having been sold. Under support from national industry policies, TD-SCDMA terminal chips and product marketability have developed rapidly.
China's domestic brands grab more market share
The cancellation of the mobile phone approval system in China has brought new opportunities for domestic manufacturers, stated CCID. The market share of domestic manufacturers in China's mobile phone market in the third quarter increased when compared to the second quarter, rising to 33.4%. Featuring phones with low price, fashionable design and a variety of applications, domestic manufacturers such as K-Touch, Gionee and Telda are seeking out new opportunities. And the the use of contract manufacturing by foreign manufacturers in China's mobile phone market brings more opportunities for Chinese manufacturers, noted the research firm.
Nokia's sales volume increased in the third quarter, however, with competition from Samsung, Sony Ericsson and numerous SMEs, its market growth was not obvious. The market share of Motorola declined in 2007, but its second place market share position will be difficult to shake in the short term. The total market share of Samsung, Lenovo, Sony Ericsson, Bird and Amoi amounted to 30%.
CCID forecasts that China's mobile phone market will enter a new peak in the fourth quarter of 2007. Mainstream manufacturers will launch more new products in the second half of 2007 than in the first half, stated CCID, noting that with the cancellation of the mobile phone approval system in China, more enterprises will produce mobile phones, which will also help encourage growth of the market.
source
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