Thursday, May 18, 2006

China: Foreign companies are surpassing Chinese companies in mobile phone market

(By Razib Ahmed)
China has now the world's largest mobile phone user base and the market is growing very fast. For example, in the first quarter of this year around 25 million mobile phones were sold in China. It is a 15.3% increase compared to the same time last year and even it is higher 8.5% than the previous quarter. Sales revenue in the first quarter was $4.6billion and it is a good improvement too. The market is growing but the market share of Chine mobile phone producers is shrinking. Nokia, Motorola and Samsung have the top 3 spots in the Chinese market and their market shares are:
Nokia: 26.9%
Motorola: 13.4%
Samsung: 9.02%
The market share of Chinese mobile phone producers is 36.9%. The market shares of top Chinese companies are:
Bird: 7.71%
Lenovo: 7.04%

Kongka and TCL- two old and previously popular Chinese brands did not perform up to the mark and lost their market share significantly.

China's mobile phone market grew very fast in the last few years and the market is going to show sign of slowing down within a year or two.

The interesting thing is that while people in the rest of the world are afraid of Chinese products flooding their market and costing their jobs, Chinese mobile phone companies are losing grounds in their own backyard.

What is your idea about it?
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