From data by CCID Consulting, the sales volume in China's mobile phone market is 150 million units in 2007, which is 24.1% more than that of 2006. If black- market mobiles from smuggling, unregistered brands and other illegal products are counted, the number exceeded 200 million in 2007.
Sales & Growth Rate of China Mobile Market 2000-2007
In 2007, over 60% of users changed their mobiles with over 90 million mobiles sold for this purpose. The reasons could be attributed to faster function upgrades, higher performance- price ratio, shorter product life cycle, and customized service by the network operators. The number of new subscriber reached a new record in recent years with over 86 million new subscribers in 2007 and over 7 million per month.
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According to their statistics, new subscribers mainly come from rural markets and 3rd/4th-level cities.
CCID says that the competition of products on the market will be rather fierce while the China mobile market is developing on a large scale. The homogeneity, price wars, and sinking channels will direct consumer behavior, and manufacturers will turn from seizing market share to chasing profit. The certificate of mobile authority and the launch of the China 3G mobile market will stimulate market competition and create concentrated market share in already-advantaged brands and less market share in small brands. It will also create competitive cooperation among manufacturers, distributors and network operators.
Source: Cellular News.