Outlook on Chinese Mobile Industry

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  • Author Subhash Kandpal
  • Published November 16, 2009
  • Word count 425

Over the past few years the Chinese Mobile Industry has witnessed a major revolution. In fact, China has emerged as one of the few countries in the world that continued to enjoy steady growth despite declining global shipments of mobile handsets. Today China is the world’s largest mobile communications market. In fact, the ratio of mobile subscribers in China has surprisingly crossed the ratio of fixed-line subscribers in last few years.

Looking at the present scenario, China has even emerged as the world's largest mobile phone manufacturing base. Today China is one of the few countries in the world that are differentiating themselves from their competitors, with enhanced manufacturing capabilities and highly developed product development strategies, to produce mobile models with value-added features and pioneering designs. In fact, the issue of long awaited 3G license is just one of the few examples that have helped China emerge as one of the world’s major 3G mobile makers.

If we study the recent statistics, in the first quarter of 2008, the total mobile phone shipment in China reached 134 million units, which was 34.5% higher than the previous year. Apart from this, the subscriber ratio of mobile service also reached a new height touching 480 million at the end of the first quarter of 2008, which has increased roughly 20 million in comparison to the statistic data at the end of last year. Besides this, the most interesting trend that gained enormous popularity in recent years has been content usage. As per the latest research conducted by independent body, in 2008 mobile subscribers sent 502.7 billion SMS messages, which was surprisingly 42.3 percent high from 2006 statistics.

Apart from all this, as per the leading industry experts, the major growth in Chinese mobile market has been the outcome of recent industry deregulation, liberalised foreign ownership laws and rapid expansion of networks. Adding to this, a drastic fall in the price of the mobile handsets has further contributed to strong growth.

The impressive expansion of China's mobile handsets has been a major driving element to push the country's current economic development. As China has entered WTO, the local mobile device industry which previously considered being isolated has now became the major part of the global electronic market. Chinese mobile market and the industry development is evolving in a faster than ever speed. Looking to its vast market reach, certainly Chinese mobile market offers tremendous opportunities for investment and trade both for the present and future. In fact, today global players in telecom industry are stepping towards China to enjoy the slice of this fast growing cake.

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