Profit Of China Mobile Touched US$ 8.48 Billion Mark In 2006

Chinese mobile industry is booming with China Mobile’s annual profit for 2006, reportedly touching US$ 8.48 Billion mark and playing a dominant role in the country’s mobile industry development.

Chinese mobile industry is booming and China Mobile, with US$ 8.48 Billion profit in 2006, is playing the dominant’s role.

On March 21, 2007, China Mobile released the statistics that it achieved a profit of 66 billion yuan (about 8.48 billion U.S. dollars), in the year 2006.

China Mobile is one of the dominant players in Chinese mobile market. News published on the English People says that the number of subscribers crossed 300 millions and year 2006’s turnover was 295.4 billion yuan, 21.5 percent up from previous year. Capital spending in the last year increased to 87 billion yuan from 71.5 billion yuan in the year 2005. In news published in the Bloomberg the company says that it has plans of spending 99.8 billion in 2007, 98 billion in 2008 and 96 billion yuan in 2009.

Rural market is considered to be the faster growing sector. The main reason behind the increase in the number of subscribers is the enlargement of rural market. This is particularly due to the developing services and products targeting the rural market. With the booming global economy of China, people are able to upgrade their mobile regularly; this played a direct a role in the leap in mobile handsets’ sales.

Companies like Nokia and Motorola target the wealthy middle class and tech savvy young generation of China for introducing a new product in the market. People here are eager to adapt to the latest technology and they welcome new launches or new products with open hands. With the entry of the mobile phone companies like Motorola, Nokia, Ericsson the handset market of China faced a visible boom.

Research analyst at RNCOS finds out, “With the rapid development in Chinese mobile communication market, competition has become even stiffer. For outside companies, the country offers endless reasons that stress on the advantages of investing in China. At present, China is seen as an ideal marketplace for the developers of wireless technology. The huge numbers, compelling models of business, key habits of users, and ultimate profit, all contribute to the strengthening of importance of making a strategic presence in Chinese mobile market.”

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