Apple's iPhone in China: CanApple Cash in on the World's BiggestMobileMarket?
Details
Themes: Strategy
Pub Date : 2009
Countries : India
Industry : Telecommunications
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Case Code : COM0241
Case Length : 08 Pages
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Mobile Handset Market in China Contd...
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To benefit from the opportunity, mobile handset manufacturers began launching models meeting the 3G standards. For instance, in 2009, Samsung planned to come up with 1512 mobile phone models that would support 3G services offered by all the Chinese telecom operators. Meanwhile, telecom operators were also tying up with handset manufacturers to further promote 3G services in China. For instance, China Mobile, to strengthen its position in Chinese mobile market on 3Gservices, is planning to fund the R&D activities of mobile phone brands like Nokia, Samsung, Sony Ericsson and LG. According to Chairman, Wang Jianzhou of China Mobile, the company plans to fund R&D to improve its 3G service and develop its range of products.13 Chinese Consumer PreferencesThe 3G services in China are also expected to receive huge boost from consumers. According to Michael Zhan, research director of CTR Market Research (CTR), a market research company in China, |
"Users and potential users see that 3G represents the fashionable and innovative high technology,
and it would enrich their experience through its multimedia functions."14 For the same,
CTR conducted a survey in 10 big cities of China and revealed many interesting findings on Chinese
consumers' preference of telecom operators . According to this survey, though China
Mobile is displaying higher ability in retaining and attracting consumers, every telecom operator has
its own advantages in offering 3G services. Understanding the Chinese consumer in case of mobile
handset device preference is however, challenging for the mobile phone brands. Chinese consumers
are usually price-conscious and at the same time show equal interest in advanced mobile phone
features
To overcome these challenges, most of the foreign handset brands developed mobile phones
based on consumer choices. For instance, Nokia designed mobile phones considering the price and
design preferences of Chinese consumers and catered to all the consumer segments with diverse
product portfolio .Motorola, Samsung and Sony Ericsson also attracted consumers
with quality phones and enhanced features. While the competition amongst these
players is very stiff, all the handset brands together are facing competition from counterfeiters and
unlicensed mobile phones in China.
12]"Samsung to bring 15 3G handset models to China", http://www.hktdc.com/info/vp/a/elec/en/1/6/1/1X05UPDK/Electronics-Electricals/Samsung-to-bring-15-3G-handset-models-to-China.htm, May 15th 2009
13]"China Mobile seeks tie-up with handset manufacturers to boost 3G platform", http://wirelessfederation.com/news/14614-china-mobile-seeks-tie-up-with-handset-manufacturers-to-boost-3g-platform/, September 3rd 2009
14]Zhan Michael, "China telecom market may reshuffle as consumers show low loyalty toward 3G operators", http://www.chinadaily.com.cn/bizchina/2009-06/04/content_8247450.htm, July 4th 2009