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The Chinese Mobile Phone Industry, 3Q 2003 and Beyond
Market Intelligence & Consulting Institute (MIC) [a division of Institute for Information Industry (III)], Dec 2003, Pages: 29
Shipment volume forecast up to 4Q 2003; future outlook of product mix, production locations, and competition between Chinese makers; special discussion on Chinese maker design competencies; 3Q 2003 review of aggregate shipment volume and volume by maker origin, export ratio-volume maker comparison and industry volume rankings, design solution provider market share, production locations, competitive profiles of North American, European, Korean, Japanese, and Chinese players.
Reeling from channels flooded with handset inventories and the impact from SARS, negative factors suppressing shipments in the first half of 2003 carried the Chinese mobile phone industry shipment slump into July and August. Yet with the Chinese October 1st holiday around the corner, volume began to pick up in September, yielding high year-on-year gains but much far less dramatic sequential growth. Price wars have become the inevitable product of market overrun with homogenous models. Chinese makers are working to upgrade in-house design competencies, and heavily procuring design solutions from total solutions providers, handset design houses, and international vendors to rapidly bring new phones to market. Strategies are gradually moving away from a focus on marketing toward emphasis on production costs and design capabilities, setting up the Chinese mobile phone industry for a shake-out.
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