CCID Consulting's data shows that the sales volume of China's mobile phone market in 2007 reached 150 million sets, up 24.1% over 2006; and the sales volume of mobile phone market in 2007 broke though 200 million sets, inclusion of black mobile phones sales volume. China's mobile phone market has entered massive growth stage. The impetuses are market demands and technical innovations.

China's mobile phone market has been directed by the trend in changing mobile phones according to new technology developments since the second half of 2003. The share of users that change mobile phones in 2007 exceeds 60% and the sales volume of changing mobile phones exceeds 90 million sets. The reason for changing new phones include functions upgrade, improvements in cost performance, shortening of product life cycle, the advent of carriers' customized business and experience consumption etc. Meanwhile, new mobile phone users increase in recent two years: new mobile phone users in 2007 exceed 86 million, monthly new users exceed 7 million. Statistics show that new users in tier-3, tier-4 cities and country market are the major source of new users; the joint efforts of carriers and manufacturers drive the requirements in this market. China's mobile phone users in 2007 reach 547 million sets. Huge subscriber base, market segments' differentiated demands and changing mobile phone demands in the 3G market drive the large-scale development of the mobile phone market.

Looking back to the history of the developments in mobile phone functions, mobile phone has accomplished popular functions such as color screens, photography and music. The development of 3C convergence technology drives up innovation in mobile phone functions, such as MP4, TV, Bluetooth, GPS and WIFI; although some innovative functions did not become very popular, they remain a part of the development. Currently, room for development in mobile phone hardware is limited, with developments directed towards application and service. In 2007, the launch of iPhone was definitely an important event for the market, and its release led to discussions on integrating Internet functions with mobile phones, an area that will remain in focus in the future. Global mobile phone leader, Nokia, puts forward overall Internet transformation strategy, which is the best proof. Meanwhile, product shape and industrial design is another clew of products' technical innovation: Samsung's slide phone and Motorola's ultra-slim mobile phone dominate mobile phone fashion trend, making mobile phone become a part of fashion elements. Mobile phones will accomplish the missions of wireless information and entertainment terminal, and mobile phones' technical innovation will develop faster than any other consumer electronics product.

China's mobile phone market entered large-scale growth stage, and the competition in the market is heating up: similar product property, price war and channel subsidence are the most direct presentation. Manufacturers' competition emphasis transfers from market share to profit. Meanwhile, mobile phone's approval system and China's 3G mobile phone market's start will drive the upgrade of the competition.