Domestic Smartphone Has Huge Market Potential

Domestic Smartphone Has Huge Market Potential
Jun 10, 2010 By Liu Xiaofeng , eChinacities.com

Currently mobile industry is not isolated any longer; instead, the boundary among the industries becomes very vague. Internet and mobile industry are integrating while personal computer and mobile phone are merging together too.

On April 19th, after purchasing Lenovo Mobile, Lenovo Group announced to launch a significant product -- LePhone. Mr Liu Chuanzhi, Chairman of Lenovo Board said LePhone and iPhone would fight desperately to seize the market. According to the hearsay among the people of this industry, LePhone will take the mid and low end road with price around 3000 RMB yuan, much lower than iPhone while having better performance. That would enable LePhone to become one of those most anticipated mobile phones for domestic consumers. 

Mobile phone industry finally sees the hope to grow up again after the release of 3G-business license. And with the powerful involvement of software and internet service providers, the development road of mobile phone industry would be more wonderful. Whether the transformation of the traditional mobile phone manufacturers or the drooling involvement of the companies in the other industries, their focus lie on the strategy of intelligent mobile internet encircling 3G. A series of moves of many giant companies indicated that the mobile phone industry has ushered in new opportunity to develop and each major manufacturer seems to have found a new profit model.

In the former time, the manufactures made profit purely by selling mobile phones; however, the price war resulted in the harder and harder business situation. But in addition to selling phones, what else they can sell? The launch of many digital products led by Apple brand displays the new profit model in front of the whole industry. The numerous charges processes in the App Store -- Apple's online store have become the new profit growth point, and all this thanks to the wide use of 3G networks.

Mobile Market, Telecom Surfing Space, Nokia Ovi Store, Lenovo Application store and developer community -- all these application programs stores have provided the new options to each mobile phone manufacturer. These application stores provide numerous application programs for subscribers to download so as to meet their various demands. The developer community also provides the complete and mature software kits, which enables the developers to participate in the mobile application R&D. That is exactly an embodiment of localization for numerous providers.

At present, what can attract the consumers are exactly those intelligent applications. Whether Apple's hot sales iPhone or Lenovo's new launched LePhone, what they impress the people most directly are no more than the powerful internet application functions and fun of multitouch. For instance, LePhone carefully chose the Chinese people's favorite internet applications, cooperated with the internet application and service partners like Baidu, Sina and Tencent etc in the deeply optimized design and installed those applications inside the mobile phone for subscribers to use more conveniently and instantaneously.

Now people can browse the websites and write the microblog and play online games on the phone with multi-ways like 3G network and WIFI. Thanks to 3G networks, the mobile phone can completely realize any function of personal computer. Plus the advantages like portable and network covering everywhere, the mobile phone has become a true mobile internet terminal which can match with the laptop.

Although many companies with long history have bad business, people of this industry still feel optimistic about the industry of smartphone, therefore more and more companies are involving in such a fierce battle for the market. According to some research firm, in next four years, the global sales of smartphone would surpass 1 billion pieces. The smartphone would lead an industrial wave and become an important standard to measure the strength of the mobile phone manufacturers.

Since Apple introduced iPhone in 2007, the mobile phone was no longer a hardware product, instead, one product integrating the content, services and applications. In the first quarter of this year, Apple surpassed Motorola and became the biggest mobile phone manufacturers in America. Their gap mainly lied in the market share of smartphones. According to the data, Motorola sold 8.5 million pieces in the first quarter while Apple sold 8.8 million. Among the sales of Motorola, smartphones accounted for only 2.3 million pieces, only 1 fourth of the whole.

Indeed, the hot sales of smartphones like Apple iPhone indicated that the mobile industry is doing self-adjustment with the mobile internet, content and service as the core. "Whatever the various internet application programs or the application stores installed in the phones, their purpose is to meet the various personalized demands of consumers. The new experience of mobile internet brought by 3G network enables the phones to truly realize "custom-tailor" function." One insider said, "3G phones in the market used by different consumers would have different functions. Every consumer would download the software they need according to their own requirements."

Experts pointed out that the service based on the location would open a new vision for the mobile application and become a new opportunity. Olli-Pekka Kallasuvo, Nokia CEO has ever said??"location is not a kind of application, but it brings a brand new horizon and value to the internet." This can also explain why Nokia invested huge capital to the service field based on the location such as the acquisition of Navteq, the map service provider with 8 billion USD. Early this year, Nokia introduced the brand new Ovi map application, which enabled Nokia to explore the markets such as India, Brazil and Russia where Google and Apple have not dominated. Olli-Pekka Kallasuvo said, "Integrating the location element into the different service can bring up a good opportunity and excite the people using internet."

3G age has just begun and the mobile phone industry has just ushered in the warm sunshine of early spring. Driven by the spring wind of mobile internet, the bad situation of mobile phone industry will be changed totally.

3G pulls the domestic and foreign mobile phone brands back to the same start line once again and provides a broad market space to the mobile phone manufacturers. Who can grasp the chance to achieve a gorgeous turn? Looking forward to the wonderful performance of the mobile phone manufacturers.

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