China's mobile phone industry: a decade to build ecological chain

China Mobile Communications Development for 20production and processing. The share of domestic
years, mobile terminal development of themobile phones is still in the stage of a gradual
industry was only ten years. This decade, China'sclimb.
mobile phone industry is experiencing marketThe second phase, from 2002 to 2004. The
share from zero to half of the glory, but alsoauthor is willing to be known as the "hero of the
experienced the pain of inventory backlog fundingbush phase", because at this stage, domestic
strand breaks, but struggled in ups and downs,mobile phone fortunate to catch up with
one from the chip to the operating system,consumer demand in China's mobile
application software from the platform to the ,communications during a large outbreak, coupled
from program design to machine-madewith domestic mobile phone to play a localized
completely autonomous mobile industrial chain hasedge channels and the use of suitable conditions
been formed.marketing, the share of domestic mobile phones
China-made mobile phone in early springhas been rising. In 2002, domestic mobile phone
China's mobile phone industry, are able to comesnatched 30% of the domestic mobile phone
today, the formation of the terminal market,market share; in 2003, this figure soared to 55%,
foreign brands to compete with the situation, inreaching a record high.
the upstream and downstream to form aBut the glory has come too early, not yet able to
relatively complete industrial chain, fully benefitedgrasp the domestic mobile phone R & D
from the Chinese Government in 1998 brewingcapabilities, but also had time to sort out the
since 1999 implemented policies.loopholes in the management, it is not so much an
Prior to 1999, China's mobile phone market isopportunity as it is a test. Domestic mobile phone
monopolized by international brands, Motorola,sales has been steadily rising in the circumstances,
Nokia, Ericsson is the market's major brands, allon the one hand a large number of stocking, to
cell phones need to be imported.continue the introduction of complete sets of
The Ministry of Information Industry wascomponents; the one hand, Bird, TCL, the South
established in 1998 to change this situationHigh-tech and other enterprises, but also have
shoulder the historic mission. In 1999, China begantheir own acquisition of mobile phone development
to identify strongly support the policy of domesticplatform, for system integration development, an
mobile phone market, mainly took out 400 millionattempt to fill the shortage of technology . This
yuan from the treasury to support a certainphase of China-made mobile phones, is created by
technological and economic strength of the mobilecurrent events, "Heroes" can be a good first-class
phone production enterprises, Ministry ofsituation disappear, competition, environmental
Information Industry allocated from the mobiledegradation, "bush" period of vulnerability on the
phone network costs 14 million to support theevolution of the big hole.
development of domestic mobile phone business,The third phase, 2004-present. This is the stage
while the state has five years of initial installationof adjustment and poised. In the above hidden
fee from a fixed telephone to extract 5% inunder the 2004 decline in share of domestic
support of the domestic mobile phone researchmobile phones, retreated to 50% do not speak,
and industrialization of the special funding.but also there was defeated in 2006, fell to 28%
Matched with this, and at that time issued anbelow. At the same time, some enterprises have
important document - "V document", the specificbeen a financial strand breaks, collapse, easy to
reference to "strictly control the mobilemaster, coaching change or even shut down the
communications product project projectsituation, once a brilliant brands such as Kejian,
examination and approval," and that "thePanda, Capitel, Eastcom, Soutec have withdrawn
production of mobile phones into the nationalfrom the market, there are some old brands,
guidance Plan. "such as the Bird, TCL, Konka began to adjust its
"V document" form for a very long time thestrategies. In this session, there had been some
leading domestic mobile phone production "license"impact on future patterns of mobile phone
system. In March 2005, before the domesticindustry, the factors that make the whole
mobile phone market has 49 licenses: one GSMindustry further into the stage of adjustment and
mobile phone licenses, 30, was sent to 13 jointreserves, namely: approval system, black cell
ventures and 17 domestic enterprises; CDMAphones and 3G technology.
mobile phone licenses, 19, 1 8 was sent toApproval system and black mobile phones are
domestic enterprises and joint ventures, only onelinked to some extent, it also said earlier the birth
was sent to foreign Motorola's; has 14 companiesof a second-generation Chinese-made mobile
with both GSM and CDMA licenses obtained. Inphones. Now re-run these two generations of
addition to strictly control the import of foreignmobile phone features, the first generation of
mobile communications products, the Ministry ofbusiness because it is "license" system a little
Information Industry also provides mobile phonemore than a product of the sense of mission, to
exports of foreign-funded enterprises currentlylarge enterprises, operating system, not as good
account for total capacity of at least 60%.as the second generation of less flexible;
Country's support policies to bring the springsecond-generation mobile phone enterprises to the
home-made mobile phones in 2003, the domesticprivate capital-based, profit goals are more clear,
mobile phone market more than 7000 million ofpragmatic and responsive corporate culture, but
total sales, the domestic mobile phone accountsbecause of the lack of sense of national mobile
for more than 55%, to the development historyphone industry, is difficult to see it invest in R
of domestic mobile phone market share high.& D, etc., to adapt to these more "eco-chain
The rapid expansion of the market sentimentoperations" of the mobile phone business Can a
attracted more companies to enter the field ofreal and strong, with international brands Bipin is
mobile phones, many enterprises in the case ofstill unknown.
unsuccessful application for a license to OEM, etc.,Industrial ecological chain from the "core" perfect
in this regard makes the part of the licensedAlthough the pattern of domestic mobile phones is
enterprise "something for nothing" and it is notstill evolving, but it can already guess, domestic
conducive to market regulation. By the end ofmobile phone will eventually occupy the domestic
2004, as "V document" time has come to theand global markets, an important position. At the
entry into force, the state decided to implementsame time, on the Ready-made mobile phones,
the many years of "license" system into mobiledevelopment, and then gathered momentum in
phone production "approval system." February 19,the process, a complete autonomous mobile
2005, three days after the Spring Festival holiday,phone industry chain has been formed.
the National Development and ReformDesign is the mobile phone industry an important
Commission issued a "mobile communicationlink in the chain. The end of 2001, early 2002,
system and terminal investment projectsChina's mobile phone design company (desig
approved by a number of provisions." China'snhouse) sprouted up to Beijing, Shanghai and
mobile phone industry, embarked on anotherShenzhen for the center, formed a design
track.company co-existence of dozens of the situation,
Evolution of two generations of the threethese companies developed a direct result of is to
companies createdmake a large number of South Korean, Japanese
So far, it can be said of domestic mobile phonedesign company to close down. Mobile phone
industry has experienced two generations ofdesign industry peaked in 2005, of which
mobile phone manufacturers. Generally speaking,TechFaith Wireless, the dragon flag, Rahim, such
pre-approval system to obtain a license for theas 3-pass success in overseas listed companies,
first-generation businesses, in March 2005 afterrepresented by. According to incomplete statistics,
the adoption of the approved enterprises engagedin China's mobile phone design company in size Ba
in production of second-generation mobile phoneJiubai home, only the size of Shenzhen, there are
business.three or four hundred at home.
This is because the market in which twoCell phone chip is the core of the ecological chain.
generations of business environment, industryWhen mobile phones are the lifeline of the
environment, as well as their backgrounds arecompany's center of gravity moved from the
different in terms of operating and marketdesign time of chips, China domestic mobile phone
performance is also very different. Of course, aschip design development and the underlying
some enterprises themselves are also changing ashardware, software protocol stack design and
the environment constantly adjust themselves todevelopment has been developed from scratch,
the abstract summarizes the characteristics ofand gradually matured. Today, the real China's
these two generations, business is not easy, it is"core" of the mobile phone market is already a
best to first understand the development processminority in China. Spreadtrum established in 2001 is
of domestic mobile phone enterprises.the domestic market is currently among the top
The first phase, 2002 years ago. Many people arethree of the baseband processor providers,
willing to trade since 1999, but I believe thatSpreadtrum thus be listed on Nasdaq. In addition,
should be able to go back, which is China's mobileChipnuts, Anyka multimedia processors and other
phone industry, dormant period.enterprises have also been applied to a new
This stage, the relevant functional departments ingeneration of home-made phone.
the government a series of supportive policies,Other mobile phone industry chain in the various
the large number of enterprises have also seenimportant parts, such as resistors, capacitors,
the prospect of the mobile phone market, to do,inductors and other electronic devices, have been
"the Chinese people's own mobile phone." In 1999,gradually localization, battery batteries, battery
before the special, a number of enterprisespackage, charger, earphone and other accessories
dedicated to mobile phone research andhas been completely attached to localization;
development, such as Zhejiang, EasternSpeaker, Receiver, Mi - crophone and other
Communications in 1997 in Silicon Valley in theelectro-acoustic devices, vibration motor, side
United States invested a mobile phone R &buttons, I / O jack, headphone jack, SIM card
D base; 1998 Kejian sent six people to the Unitedconnector and other components are also largely
States COMQUEST companies R & D team;domestically; mobile phone displays and other
a joint venture plant background domestic firmscomponents there are already local companies
by foreign brands mobile phones of the productionexport to the domestic mobile phone enterprises.
process of research and study and develop itsThese essential components of products, there
own team of engineers.are many companies because of their good
The early transfer fee patents millions of dollarsquality products and excellent value for money,
at every turn, ZTE, Kejian, Konka, Huawei andbut also into the Motorola and other large
other domestic enterprises to carry out a largeinternational companies purchasing lists of
number of system integration programcompanies at a loss to South Korea and Japan.
development, including COMQUEST program,At the same time, domestic mobile phone
Lucent Technologies program, BORDCOMproduction as well as ancillary peripheral industry
program, AD I program, TI Program , PHILIPSgroup has also been rapid development of the
program, SKYWORKS program, InfineonSMT from the front to the back-end processing
programs, etc., to cultivate a large number ofand assembly, not only every major mobile phone
mobile phone technologies such as R & Dmanufacturers a complete production line, but also
engineers in the field laid the foundation for China'sto the Pearl River Delta, Yangtze River Delta cities
domestic mobile phone enterprises technologicalof Dongguan and Suzhou 2 the central area of
accumulation period.radiation out of the 1000 SMT factory, mold
From the end of 1998, a number of independentmanufacturing and coating plant and processing
research and development of mobile phones oneplant. Recently, with the establishment of BYD,
after another in Dongxin, Kejian, Capitel advent ofand Techfaith Wireless companies than Germany,
laboratory and other enterprises. But in thebut also a major international brands for OEM EMS
market, this time the majority of domestic mobileplant may be born.
phone or in MKD (the introduction of machineDecade, the achievements of a such a large and
methods), SKD (large CKD), or the use of mobilecomplete the ecological environment, perhaps only
phone communication module approach toChina can.