China mobile market has achieved an excellent platform as the country is expected to have produced more than 40% of the world’s mobile handsets in 2007.
China was expected to manufacture around 500 Million cell phones in 2007, over 40% of the world’s total, predicted the sources close to the economic restructuring and operation department of the Ministry of Information Industry, according to the news reported by People’sdailyonline.
38 firms from the Mainland China sold over 78 Million GSM phones in the first nine months of 2007, an increment of 10% on similar period last year (2006). The number made up for 22.6% of the country's total.
China has experienced a stable and speedy expansion in its economy and rooting reform measures, and is also opening its doors to the outer world. The population in China, along with a thriving economy, supported to make a concrete foundation for the expansion in China’s mobile industry.
In addition, the younger tech-savvy generation of China, which has always preferred the most attractive and sophisticated models, has played a major role in pushing the mobile phone production to its highest limit. Several services, for instance mobile banking, music downloads and portable and rapid mobile net surfing, has resulted in the growth in handset demand in China.
Other reason for expansion in the mobile sector in China is the high competition in the mobile market. The thriving environment for Chinese business is drawing the attention of new operators. This has resulted in a war between these operators to survive. That’s why they are offering services at economic prices.
As per industry experts, revenues generated by the mobile industry and capex will continue to expand in next few months. The main drivers will be the ever-increasing growth and the acceptance of new technologies like G, which counterbalance price downfalls in basic mobile voice features and WiMAX.
According to a Research Analyst at RNCOS, “The booming mobile industry in China has been a paradise for both mobile manufacturers and mobile operators as well as for mobile subscribers. The mobile industry is ready to thrive in the future also. Chinese mobile industry requires adoption of more innovative and attractive mobile technologies such as iPhone, which has not been introduced till now. 2008 Beijing Olympics should be a main attraction for mobile operators as more will visit China from countries around the world and increase the scope of sales.”
Related Market Research Reports:
China Telecom Analysis (2008-2012)
European Mobile Market Scenario to 2012
Indian Telecom Analysis (2008-2012)
