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CCID Consulting said mobile phone sales in China are forecast to reach 150 million units in 2007, up 23.1% year-on-year.

However, the sales volume was expected to drop 0.3% to RMB166.1 billion (US$22.66 billion) because more low-end mobile phones were sold during the period.

The average price of a mobile in China dropped from RMB1,408 in 2006 to RMB1,142 this year. In addition, more than 20% of mobiles sold were less than RMB500.

Li Xuefang, a CCID consultant, cited increased demand for tailored phones by mobile operators and rising low-end mobile users in rural areas as the main reasons for the price drop.

She added that promotions by domestic manufacturers of mid- and low-end mobiles also brought down the general selling price.

In the third quarter of 2007, Chinese brand mobiles accounted for 33.4% market share, up from 31.1% in the second quarter.

CCID also predicted mobile sales, driven by rising low-end mobile users and the forthcoming launch of the third generation mobile networks, would exceed 200 million units in 2009.

But that is pure guesswork. The key is the date that 3G becomes widely available. At which point the market will change dramatically. In Japan the mobile is already being seen as a replacement for the computer. In China that will be a major trend so anyone predicting figures has to first know when 3G will be widely available. A good guess would be April next year. But that is only a guess.
Source: China.org.cn

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This is part of a world wide trend. China’s telephone fees will continue to drop next year following a steady decrease over the past five years. This according to Wang Xudong, the minister of the Ministry of Information Industry, the country’s top IT regulator.

China’s telecommunications fees decreased 13.6% in 2007 and 53% over the past five years.

Wang Xudong said, ‘Telephone fees are of wide concern in the society, and the level will continue to drop in 2008.’

There will be a free incoming call policy nationwide and the high roaming fee level will be severely trimmed in 2008.

Instead of focusing profits on voice communication costs, Chinese carriers will now try cash in on data-based services, from broadband video, ringtone download and mobile stock information.

In this they are right.

The mobile phone is more and more taking the place of the personal computer as an information provider. The illustration is of Wan Xudong at the demonstration of June, a 3rd generation multimedia and satellite digital mobile broadcasting service. He does not look over-encouraging.
Source: China.org.cn

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