China's Qiao Xing Universal Telephone has said that in 2004, the sales volume of mobile phones under the brand name CECT is experiencing continuous growth. According to a survey by Sino-Market Research Limited, in October 2004, CECT's ranking moved up eleven places, compared with March 2004. Better still, in November 2004, it moved up one place from the previous month.
"It is known to all that 2004 was a cold winter for most of China's domestic mobile phone players. In the keen competition against foreign brand names, they encountered quite a lot difficulties including lack of core technology, being in the down stream of the global procurement chain and excessive inventories," Mr. Wu ZhiYang, CEO of CEC Telecom, Ltd and Vice Chairman of XING, said " As a whole, China's domestic players suffered a shrink in market share in 2004 compared with 2003. To our fortune, CECT is such a good exception that it is recognized by industry commentators as a dark horse in China's mobile phone market in the same year.
"CECT has made technology the core of its competitiveness since its inception. We already have an R&D team composed of hundreds of people. In 2004, CECT launched scores of new fashionable mobile phones and achieved substantial breakthrough regarding the Research and Development of high-end mobile phones including smartphones, camera mobile phones, PDA mobile phones and mobile phones with handwriting recognition software. Recently, we have launched six more mobile phone models. These include camera mobile phones with 1.3 million pixels enhanced mini PDA mobile phones and currently the thinnest camera mobile phone in China.
"By mastering mobile phone core technology, we have effectively improved the gross margin of our products and been more responsive to the market demand. In addition to strong R&D capabilities, our success also came from three areas: First, we emphasize cost control thoroughly in the process of procurement and production, which has led to more competitive price and reasonable gross margin. Let's take the mini PDA for instance. The price of such a product is nearly RMB1000 (USD121) less expensive than the similar ones under other brand name while the gross margin is no less; secondly, each model of CECT brand name mobile phones has been specially designed for a specific consumer group. With such market subdivision strategy, our products met with fewer rivals in the targeted market. Finally, we strictly arrange our production according to realistic market demand. CECT didn't suffer from excessive inventory in 2004. On the contrary, some of our new products such as T868 even fell short of demand at one time.
"In 2005, we will continue to make R&D our top priority. Our 3G terminal products has been available and is expected to be launched to the market immediately after the 3G licenses are issued. We are confident that the sales revenue and the profit of CECT brand mobile phones will continue to grow very rapidly in the year 2005."
Posted to the site on 28th December 2004
Posted to: www.cellular-news.com/story/11553.php