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3G Leads the Sustainable Development of China's Mobile Communication Terminal Industry

September 27, 2007

CCID Consulting, China's leading research, consulting and IT outsourcing service provider, recently released its article on how 3G is leading the sustainable development of China's mobile communication terminal industry.

The mobile communication terminal market continued to grow steadily in 2007H1

Thanks to the fast growth of the global 3G market and the domestic 2.5G terminal market, China's mobile communication terminal industry saw prosperous production and sales in the first half of 2007. CCID Consulting's ''Research Report on China's Mobile Communication Terminal Industry in 2007H1'' shows that 250 million mobile communication terminals were sold in the first half of 2007. While, GSM continued to maintain its traditional advantageous market, 3G products grew significantly, accounting for 15% of the total shipment in the whole industry. Foreign firms were in the dominant position. But, domestic firms represented by ZTE performed outstandingly, and successfully entered the mainstream 3G market in Europe and America.

Figure Product Structure of Mobile Communication Terminals in China in 2007H1


Source: CCID Consulting, August 2007

3G leads the upgrading of the terminal industry, and the pattern of
market competition faces change.

The ''Research Report on China's Mobile Communication Terminal Industry in 2007H1'' shows that in the first half of 2007, the 4 foreign firms, headed by Nokia, continued to take the top 4 spots on the mobile communication terminal shipment chart thanks to their traditional advantages in the global 2.5G market. Meanwhile, as the 3G terminal market grew fast, equipment makers who did not take the traditional 2.5G terminal, particularly the GSM market, as their key field also saw their sales grow fast. For example, ZTE's 3G terminal sales reached almost 1 million sets in 2007H1 from zero 4 years ago. Meanwhile, ZTE accounted for 4.8% of China's mobile communication terminal market at the end of June 2007, taking a far lead over other traditional 2.5G mobile phone firms in China. They firmly topped domestic brands.

Fig. Brand Structure of China's Mobile Communication Terminal Industry in 2007H1

Source: CCID Consulting, August 2007

China's mobile communication terminal market will top RMB500 million in 2007

CCID Consulting forecasts that as the 3G market grows and 3G formally enters into commercial use in China, the total output and shipment of mobile communication terminals of all systems in China in 2007 will top 500 million sets. The number of 3G terminals alone will exceed 80 million sets, achieving a 3-digit growth year-on-year.

 

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