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CCID Consulting: China's Smart Phone Sales up 5.2% in 2007Q3 over 2007Q2

CCID Consulting: China's Smart Phone Sales up 5.2% in 2007Q3 over 2007Q2

BEIJING, Nov. 16 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on the 5.2% increase is sales seen by China's smart phone business in 2007Q3, compared to 2007Q2.

CCID Consulting released its latest data showing that the sales volume of China's smart phones reached 6.388 million sets in 2007Q3, up 5.2% over 2007Q2; sales revenue reached 16.61 billion Yuan, increasing 11.3% on a month-on-month basis. With students buying phones during the summer vacation and with promotions during the Chinese national holiday, the smart phone market created highs in sales volume.

Table 1: The sales volume and revenue of China's smart phone market in 2007Q3 Time 2007Q2 2007Q3 Growth rate Sales volume (10,000) 607.5 638.8 5.2 % Time 2007Q2 2007Q3 Growth rate Sales revenue (a hundred million Yuan) 149.2 166.1 11.3 % Source: Oct. 2007, CCID Consulting Symbian OS keeps the lead, while Windows Mobile's market share increased

Symbian OS have always paired well with Nokia. Dependent on the advantages of Nokia, Symbian OS have acquired nearly 70% of the market share in 2007Q3 and sales volumes reached 4.416 million sets. Different from the Symbian OS, smart phones with the Windows Mobile operating system promoted themselves via the logo of Windows Mobile. At present, manufactures such as Motorola, Samsung, Lenovo and Dopod adopt Microsoft's operating system, so the market share for Windows Mobile has increased in 2007Q3, with a sequential growth rate of 52%.

The sales volume of Linux operating systems is falling. The market share of Motorola accounts for 70% of the total Linux market. Consequently, the market share of Linux operating systems is closely joined with the sales volume of Motorola smart phones; therefore, the falling Linux figures is directly related to the Motorola smart phone in 2007Q3. The market share of Palm operating system phones is also not so good, down 52.6% with 2006Q3. The reason is that the manufacturers adopting the Palm operating system are not the mainstream of the market.

Figure 1: The market structure of China's smart phone operating system in 2007Q3

http://www.ccidconsulting.com/upload/12351.JPG Source: Oct. 2007, CCID Consulting The market share of mobile phones with large screens keeps increasing

The mobile phones with a screen size of more than 2 inches are still the main stream on the market, taking more than a 90% market share. However, even though a legible display, the market demand of mobile phones with screen sizes larger than 2.4 inches has decreased due to a larger and heavier phone introduced by the bigger screen, with the market share decreasing 12.9%.

Figure2: The market structure of China's smart phone display screen in 2007Q3

http://www.ccidconsulting.com/upload/12353.JPG Source: Oct. 2007, CCID Consulting Brand market pattern is steady, while Motorola sales decrease

As a whole, the market share of Nokia and Motorola occupies over 90% in China's smart phone market. However, because of the drop of Motorola's market scale, its sales volume of smart phones is also falling, from 1.682 million sets in 2007Q2 to 1.448 million sets in 2007Q3. The sales volumes of Amoi, Dopod, Samsung and Sony Ericsson have all increased in 2007Q3.

China's domestic brands occupy six quotas in the top ten brands. Amoi and Dopod ranked in third and fourth place, respectively. The other four brands are CoolPAD, Lenovo, TCL and Hisense. For Hisense, this is the first time to enter the top ten brands.

Figure 3: The whole brand structure of China's smart phone in 2007Q3 http://www.ccidconsulting.com/upload/12354.JPG Source: Oct. 2007, CCID Consulting

CCID Consulting forecasts that China's smart phone market will keep increasing in 2007Q4 and the sales volume will increase 5% while the sales revenue will increase 8%. Promotional campaigns are also expected to be the key to a manufacturers success in the smart phone market in 2007Q3.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as "CCID Consulting" or "CCID"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company's business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.

For more information, please contact: Cynthia Liu Coordinating Manager CCID Consulting Co., Ltd. Tel: +86-10-8855-9080 Email: liuyan@ccidconsulting.com

CCID Consulting Co., Ltd.

CONTACT: Cynthia Liu, Coordinating Manager of CCID Consulting Co., Ltd.,
+86-10-8855-9080, or liuyan@ccidconsulting.com

Web Site: http://www.ccidconsulting.com/upload/12354.JPG
http://www.ccidconsulting.com/upload/12354.JPG
http://www.ccidconsulting.com/upload/12351.JPG

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