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. 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.
