CCID Consulting: Mobile Phone Market Increases on a Large Scale, Driven by Demand...

CCID Consulting: Mobile Phone Market Increases on a Large Scale, Driven by
Demand and Technology

BEIJING, April 21 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading
research, consulting and IT outsourcing service provider, and the first
Chinese consulting firm listed in Hong Kong (SEHK: 8235.HK), recently released
its article on mobile phone market increasing in large scale.
From data by CCID Consulting, the sales volume in China's mobile market is
150 million units in 2007, which is 24.1% more than that of 2006. If black-
market mobiles from smuggling, unregistered brands and other illegal products
are counted, the number exceeded 200 million in 2007. The China mobile market
has started development on a large scale driven by market demand and
technology renovation.
Figure 1: Sales & Growth Rate of China Mobile Market 2000-2007
http://www.ccidconsulting.com/upload/12977.jpg

Source: CCID Consulting, Jan. 2008

China mobile market enters a development period led by the demand for
mobile upgrades from the second half of 2003, in 2007, over 60% of users
changed their mobiles with over 90 million mobiles sold for this purpose. The
reasons could be attributed to faster function upgrades, higher performance-
price ratio, shorter product life cycle, and customized service by SP. The
number of new subscriber reached a new record in recent years with over 86
million new subscribers in 2007 and over 7 million per month. According to
statistics, new subscribers mainly come from rural markets and 3rd/4th-level
cities. Joint efforts by SP and manufacturers further release the demand in
these areas. There were 547 million mobile subscribers in China in 2007, and
the large subscriber number, differentiated demand from segmentations and the
demand for mobile upgrade exchanges for 3G in the following years will all
push mobile market development on a large scale.
Mobile has fulfilled the popularity of color screens, cameras and music
functions over several years, and the development of integrated 3C technology
keeps on giving mobiles new functions such as MP4, TV, blue tooth, GPS and
WIFI, which boosts the function evolution, though some renovations may fail to
be popularized. The hardware function expansion is rather limited at the
moment so that the function expansion will mainly happen in application and
services. The iPhone launched by Apple in 2007 has resulted in a craze, which
shows that Internet function integration will be a major method to expand
mobile functions. The best proof is that leading brand Motorola has sounded
the call to "put Internet into your pocket and make the world wireless."
Meanwhile, outline and industrial design are the other solutions for technical
renovation, the sliding phone from Samsung and super slim mobile by Motorola
have both led to some trends and made mobiles in vogue. In the future, mobile
will fulfill wireless information and entertainment needs, which will demand a
faster technology renovation than any other consumer electronics, and it is
the direct driving force behind boosting mobile market development on a large
scale.
The competition of products on the market will be rather fierce while the
China mobile market is developing on a large scale. The homogeneity, price
wars, and sinking channels will direct consumer behavior, and manufacturers
will turn from seizing market share to chasing profit. The certificate of
mobile authority and the launch of the China 3G mobile market will stimulate
market competition and create concentrated market share in already-advantaged
brands and less market share in small brands. It will also create competitive
cooperation among manufacturers, distributors and SP.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as "CCID Consulting"), the
first Chinese consulting firm listed in the Growth Enterprise Market of the
Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly
affiliated to the China Center for Information Industry Development
(hereinafter known as "CCID Group"). Headquartered in Beijing, CCID Consulting
has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with
over 300 professional consultants and industry experts. The company's business
covers over 200 large and medium-sized cities in China. Apart from home market
development, CCID Consulting establishes international cooperation links
across the United States, the Asia-Pacific region and Europe with agents in
the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the
aim of going global.
Based on four major competitive areas: powerful data channels, industrial
resources, intense knowledge and a deep understanding of information
technology, CCID Consulting provides customers with consulting, research and
IT outsourcing services covering strategic planning, IT applications,
marketing strategies, human resources and information technology outsourcing.
Customers range from industrial IT users, telecommunications companies, energy
companies, finance companies, and automobile companies, to government
departments at all levels and diversified industrial parks. CCID Consulting
commits itself to be the number 1 consultant in strategy consulting, the
number 1 advisor for enterprise management and the number 1 consultant for
government decision-making.
For more information, please contact:

Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com

SOURCE CCID Consulting Co., Ltd.

Cynthia Liu, Coordinating Manager of CCID Consulting Co., Ltd.,
+86-10-8855-9080, or liuyan@ccidconsulting.com