Sunday, October 30, 2011

Foreign Brands Occupy 60% Of The Domestic 3G Phone Market

By Teddy Wang


In the end of September, China's 3G subscribers exceeded 100 million. Among them, China Unicom's 3G subscribers reached 30.23 million and China Mobile's 3G subscribers are close to 50 million 3G.

But the embarrassment is that of the 100 million users' mobile terminals, 60% are from international brands, and the remaining 30% are from ZTE, Huawei, Lenovo and Yulong Coolpad four mainland companies. The other 10% are divided by small businesses.

The domestic operators' procurement of 3G mobile phones is locked in ZTE, Huawei, Lenovo and cool 4. The costs of 3G smart phones are high. The carriers' subsidies lead to manufacturers' uneven distribution of wealth.

The analysts said that carriers' subsidies have become a watershed of the domestic mobile phone market. Although it will be phased out in the future, the mainstream manufacturers are still increasing the promotion. They try to use the time difference to dominate the market. He estimated that many mobile phone manufacturers in Shenzhen will be closed down.

The operators' fee subsidy does play a key role for the development of the smart phones. Currently 85% of mobile phone chain stores and 90% of mobile social channels have cooperation with the three operators (http://www.lip-balm-tube.com/). The sales growth of the smart phones is 99%, while the sales of the functional phones declined 3.8%. He believes that by 2014 the overall proportion of the intelligent phones will exceed 50%.

The market of smart phones that are around one thousand yuan have the fastest growth. The market share of smart phones with the range of 1000-1500 yuan reached 27%. The market of smart phones that are less than one thousand yuan accounted for 22%. The local stores mainly promote ZTE, Huawei, Lenovo's smart phones that are around one thousand yuan. The main reason is that they have a higher fee subsidy.

Although the operators' subsidies stimulated the development of the domestic 3G users, but it also hindered the initiative of most mobile phone manufacturers to participate in the domestic 3G. This year he has been lobbying operators to reduce the intensity or reduce subsidies to boost the growth of China's 3G terminals camp.




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