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Functions Convergence Creates Blue Ocean Domain in China's Mobile Phone Market
CCID Consulting says that China's mobile phone market has entered into period of maturity through ten years of extensive development. The sales volume of mobile phones reached 500 million sets across the world, and the sales volume of mobile phones reached 150 million sets in China in 2007. More than 100 manufacturers take part in this market and more than 1,000 new products are being launched. This shows that China plays an important role in the global mobile phone industry and the competition in China's mobile phone market is fierce.
Navigation mobile phones, TV phones, secure mobile phones, stock mobile phones and energy-saving mobile phones have bright futures, and they also provide energy to the whole mobile phone market in 2007. Meanwhile, they create five "blue ocean" domains.
Innovative mobile phone products which integrate hardware mainly focus on products converging the functions of consumer electronics, computers and communications, such as navigation mobile phones, mobile TVs and energy-saving mobile phones. The positioning service functions from navigation mobile phones converging potential demands via GPS receivers promote mobile phone's location-based service. Under the support of application businesses and practical functions, the navigation mobile phone is popular.
CCID Consulting's research has shown that consumers are satisfied with the navigation mobile phones produced by ZTE and Hi-Tech Wealth. With the cooperation of GPS chip manufacturers, e-map manufacturers and mobile phone manufacturers, the navigation mobile phone market will have great vigor in the next five years; the compound growth rate will exceed 100%. TV phones integrate TV functions through digital TV receiver modules, which could satisfy consumer demand for watching TV and be in accordance with the development direction of mobile phones' multimedia and entertainment. With processors speeding up, storage room enlarging and the appearance of multi-mode and multi-card products, saving energy has become an urgent problem to solve.
Solar-powered mobile phones have attracted consumers' attention in 2007.
Integrated with software functions, mobile phones are coming out with new innovate products. Application software provides content service via mobile phones, which could satisfy individual demands in the segment market. For example, secure mobile phones, which are launched by Hi-Tech Wealth, are aimed at business people and people in the entertainment industry. CCID Consulting's research shows this segment's market scale is not large, but the competition in this area of the market is toned down leading the way for a bright future.
Mobile phones integrative application functions. With the development of the global 3G market and the decline of voice operations, mobile operators are actively promoting application operations. Mobile phone manufacturers are now integrating application operations in their newly-innovated products, one new approach to Blue Sea. China's red-hot stock market has driven an increase in mobile stock demand. Both China Unicom and China Mobile operate their mobile stock business. China Unicom enlarged its strength on customized stock mobile phones in 2007. CCID Consulting forecasts that the stock mobile phone market will reach 10 million sets in 2008.
China has population of more than one billion and 500 million mobile phone users. There is a great number of potential users, so the sustainable development of the mobile phone market has a bright future. In order to build Blue Ocean strategy, China's manufacturers should find correct cut-in points and combine it with their own characteristics. Firstly, they should pay attention to users' demands in their business innovation and provide multi- level, differentiated, individual services. Secondly, they should establish a favorable interactive relationship between upstream and downstream enterprises, and create a favorable environment for the whole industry.
Posted to the site on 12th December 2007