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China market: Household appliance vendors joining competition for smartphones
While China-based handset vendors ZTE, Huawei Device, Coolpad and Lenovo have been dominating the smartphone procurement projects released
by mobile telecom carriers in China, a number of local household appliance vendors including TCL, Hisense, Konka, Changhong, Haier and
Skyworth have stepped up efforts to grab orders from telecom operators, according to industry sources.
China surpassed the US as the world's largest smartphone market in the third quarter in 2011 with annual sales of smartphones expected to
reach 150 million units in 2012, the sources estimated.
TCL and Hisene have begun to roll out customized models for the top-three carriers - China Mobile, China Unicom and China Telecom, while
Changhong has set up a handset joint venture with Foxconn International Holdings (FIH), indicated the sources.
In 2012, TCL plans to build up a chain of 300 exclusive sales outlets for smartphones and to launch over 50 new smartphones covering all
price segments, in addition to customized models developed in cooperation with telecom carriers and social networking websites, the sources
Changhong will invest CNY 700 million (US$110.84 million) in the Changhong-FIH joint venture, which aims to roll out 10 million handsets a
year at full capacity, said the sources.
The availability of chipset solutions from Qualcomm, MediaTek and Marvell as well as a growing number of handset design houses in China
have enabled appliance vendors to venture into the smartphone segment, commented the sources.
The iPhone 4S Makes It Just in Time for the New Year
It looks like Apple's latest and greatest iPhone 4S will be making it to China just in time for the New Year. The Chinese New Year, that
is, which takes place on Jan. 23 this time around.
This year's model has been making its way around the world in record time, no doubt taking 8-megapixel photos and 1080p HD video to
document its journeys. It's been the fastest rollout yet of an iPhone model, which also made its way to Russia, Brazil, and Taiwan, among
other places, earlier this month. Those countries follow Colombia and India, which started talking to Siri last month (albeit in English,
even though Siri has some trouble with Indian accents).
China represents limitless growth opportunities for Apple, with an exploding middle class that views the iPhone as a status symbol. The
region is Apple's fastest-growing major geography. The device recently got the blessing of government regulators at the Ministry of
Industry and Information Technology, clearing the way for its official launch.
The iPhone 4S launched in Hong Kong in November, with a buying frenzy reminiscent of the stateside launch.
China Unicom continues to be the only official carrier within the country, enjoying exclusivity the way AT&T did for a while, but that
hasn't stopped adventurous types from running millions of unlocked devices on rival China Mobile's network.
China Mobile boasts more than three times as many subscribers as China Unicom does, representing an enormous opportunity once China Mobile
inevitably gets the iPhone. China Telecom , whose network resembles Verizon's CDMA network, would also like an invite, but as the smallest
carrier, it remains less important -- just like T-Mobile domestically.
Beyond the horizon, next year's iPhone that will probably have 4G speeds should play nicely with China Mobile, since the company's
chairman, Wang Jianzhou, has confirmed a "positive answer from Apple" regarding a TD-LTE iPhone.
The Chinese popularity of the iPhone 4S is even more striking because Siri doesn't support either Mandarin or Cantonese Chinese. Overall,
Mandarin is far more prevalent throughout China, and Apple has promised support for the language in 2012. It currently works only with
English, French, and German, but Apple may bring Chinese support as soon as March.
China is Apple's land of opportunity. Apple's fiscal 2011 China revenue accounted for 12% of sales, up from 2% in fiscal 2009. The region's
revenue last quarter soared 270% year over year, and it's one reason Apple is still a buy.
With Apple leading the mobile revolution, some winners are hard to see -- because they're buried inside the gadgets. The proliferation of
mobile gadgets is going to be breathtaking, and a handful of companies stand to rake in the profits as consumers snap up each year's latest
and greatest models. We've just released a new special free report on 3 Hidden Winners of the iPhone, iPad, and Android Revolution. In it,
you'll find three companies that supply crucial components that virtually every mobile device relies on. Check it out now -- it's free.
The above information is edited by 10GTEK.
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