Research Reports
Future Trajectory of the Chinese Mobile Phone Market
April 03, 2003 / Sean Kao
25 Page, Topical Report
US$900 (Single User License)

Abstract

Although the global wireless voice transmission service market has already reached maturity, wireless data services have yet to become a part of consumers' daily lives. Between 2000 and 2003, global mobile phone market scale remained between 390 and 460 million handsets, with a CAGR of under 10%. Growing demand in Asia, and particularly in the Chinese market, has thus become a major focus for leading international handset brand makers. This report will cover trends in market scale, product specifications, market positioning, distribution channel development and marketing investment, as well as forecast likely developments in the Chinese handset market in 2003.
  •  List of Topics
  •  List of Figures
  •  List of Tables

On the basis of developments in 2002, five main trends are expected in the Chinese handset market in 2003: new subscriber numbers will fall, re-sale and giving away of old handsets will act as a brake on market growth, similarity in handset models will create fierce price competition and reduced profit margins, local Chinese vendors will use "human wave" tactics to expand distribution channels, and Chinese and international vendors will use different marketing techniques.

Looking ahead, Chinese government industrial policy will determine the extent to which PHS service impacts on the mobile phone market. Weak R&D capabilities leave most Chinese vendors heavily dependent on knocked-down shipments. As Chinese vendors are unable to directly monitor quality control, after-sales repair is likely to be a major problem. Given high production, distribution, and marketing costs, as well as the large number of similar models being launched, cost effectiveness are going to become increasingly important. Chinese maker performance in the first half of 2003 will have a key roll in defining the future development of market competition.

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