Analysis of CDMA 1X terminal Market

March 28, 2003, Unicom CDMA 1X Network officially opened in the country, to "Unicom Unlimited" U-max for the overall brand of wireless data value-added services also in the country 31 key cities across the entire launch. China Unicom to the mobile GPRS launched CDMA 1X business, from the "Unicom Unlimited" (U-max) of the five sub-brand, Unicom is trying to strengthen the technical and business advantages. For example, Unicom's multimedia mail Service "Color E" in the capacity and transmission rate is stronger than mobile "MMS", based on the Gpsone positioning technology "positioning Star" is also mobile GPRS is not yet available.

"Everything is about to change" is the slogan of Unicom launched CDMA 1X, the change may not only be the fate of Unicom, but also the development of China's mobile communications situation. The upgrade of the network must lead to the upgrade of competition, seek differentiated service, and whether Unicom can borrow the chance of CDMA 1X network, realize the idea of boutique network has become the focus of people's attention. And once in the early days of business development to help Unicom busy mobile phone bundled sales model shows that the handset terminal is also a key factor in determining business success. (Computer science)

Bundled sales mode will remain active

In the mobile communication industry chain, the handset manufacturer and the operator form a kind of interdependence, mutual promotion, mutual restriction relations. For example, in the global 3G development below the expected process, the lack of 3G mobile phone terminal display equipment is also a major constraint on its development, from this point to the importance of terminal equipment for operators.

Unicom through the "prepaid phone to send mobile phones," a series of promotional activities, so that Unicom CDMA mobile phone users have achieved a leap-forward development. But at the same time, in the use of a large number of mobile phone subsidies, Unicom also carried a heavy financial burden, China Unicom has suffered from the enormous pressure from the market, mobile phone bundled sales model is a double-edged sword, the need for operators to properly use.

Mobile phone bundled sales can become an important way of market development, which is determined by the status of the terminal. We see that terminals play a more and more important role in the modern telecom market. With the development of the market, the status of terminal equipment has been improved, forming the indispensable part of network value. Terminal as the end of the channel directly to the final consumer, not only bear the important responsibility of product sales, but also display products, brands and corporate image, at the same time is the best stage to cultivate mature users.

In order to deal with Unicom's CDMA competition, China Mobile also used the way of bundling mobile phones, hoping to drive GPRS breakthrough, in fact, this method is the modus operandi of telecom operators, South Korea's telecommunications operators have made great progress in the market. Sadie advisers believe that the next two years by mobile phone features and operators of mobile phone subsidies, such as the impact of mobile phones with the old replacement of the proportion of consumption will rise, is expected to 2004 global mobile phone sales will reach 501 million units. In the next few years, the mobile phone bundled sales model will still be active in the telecommunications business market.

Domestic brand confrontation CDMA mobile phone market

Of the 19 licences issued in 2001 for CDMA terminals, only one surname "Wai" ————— Motorola. At that time, many people think that this to Nokia, Ericsson, Siemens and other European and American manufacturers are very unfavorable, CDMA market will be the world of domestic mobile phones.

However, the development of the market situation is not surprising, Samsung, LG, Sanyo, Toshiba and other Japanese and Korean manufacturers to obtain the license of the domestic enterprises to form joint ventures, the success of the CDMA technology and product landing in the Chinese market strategic objectives. This way is to find a foreign partner, using their own license plate and foreign technology, production of mobile phones not only hit their own brand, but also foreign brands, such as South High and South Korea Hyundai, Hisense and Hitachi, Kejian and Samsung, Dalian, and a Korean enterprise. Plus the wholly-owned enterprise Motorola, the domestic CDMA market share is almost eaten by them, the whole market handset sales in Samsung, Motorola, Sanyo of the top three accounted for nearly 80% of the share, such a situation shows that the CDMA market is still a foreign brand in China's competition.

If domestic manufacturers continue to and other manufacturers in the low-end market melee fighting, in quantity to achieve market share of the promotion, or is quite dangerous. Mobile phone profits are expected to slide at around 10% per cent in recent years, as mobile revenues continue to fall. This situation will be more serious, because domestic handset manufacturers are OEM production, the original profit than foreign manufacturers, the only way is to be in the high-end mobile phone market occupies a place, you can increase the technical cooperation with foreign manufacturers, their own increase in research and development efforts to gradually improve. For example, the domestic mobile phone leader of the wave, cell phone production has exceeded 10 million, indicating that the wave guide mobile phone has entered the era of large-scale production, and launched a set of color, 40-chord ringtones in one of the GC600; East Letter mobile phone has launched three color mobile phone eg760c, EG860, EG890, Make it quickly into the domestic mobile phone in the midrange market, but the technical weakness is still difficult to avoid. And in the low-end market, pandas, Lenovo, Haier, Kejian, the first letter, Konka and Diebit competition has also entered the white-hot stage.

In the confrontation between domestic brands and foreign brands, despite the support of policies, but lack of core technology and intellectual property rights, no scale effect of cost advantages, domestic brands also need continuous efforts.

Development suggestions for the terminal market

Avoid price war, improve service application is the key

Unicom affixed to the mobile phone marketing strategy in the access to user breakthroughs at the same time also make China Unicom on the back of a heavy financial burden. And since January Unicom's earnings have seen, Unicom canceled mobile phone post, the growth rate of CDMA users began to slow down. If China Unicom picks up the handset subsidy strategy for the market expansion, by virtue of the high performance of its CDMA 1X network, it must be attractive to the high-end users, so the mobile will have corresponding follow-up measures, which will seriously affect the profit of the whole mobile business market.

Therefore, in the marketing measures, operators can not continue the past price war, competition should be changed to the application of services to strengthen, and thus promote brand promotion. The competition of service application is finally embodied in the competition of data business, and can prepare for the cultivation of 3G market in the future.

Data business is the future development direction of mobile communications, Sadie consultant to the Chinese market Survey shows: 2005, China's mobile data market, the number of users will reach 115 million, mobile data business market revenue will reach 5.7 billion U.S. dollars. "Unicom Wireless" under the five sub-brand, are based on data transmission of the new business form, based on GPRS network "MMS" business, but also belong to the data business category.

For CDMA 1X Mobile phone manufacturers, concerned about the development of the service application function of the data service, and the operator's business goes hand in hand, is in the CDMA terminal Market invincible key.

Leading the development of CDMA terminal advantage by technology

Advertising promotion and other strategies as the center of the commercial war can only be similar to the technical product market competition effective means, technology leader, advanced features of the product itself on the market has innate advantages.

A network survey also shows that half of internet users pay more attention to function when they buy mobile phones this year. For example, this year mobile phone competition can be photographed MMS mobile phone to obtain a clear advantage is the best example, these new South Korea and Japan, stylish, full-featured camera MMS Mobile phone will be overshadowed by the traditional European and American giants, the CDMA mobile phone market is the biggest bright spot.

Reshaping the industrial model and promoting the development of domestic mobile phones

Although the CDMA mobile phone components are less than GSM mobile phones, but because of the current production scale of domestic mobile phones, resulting in inadequate supply of spare parts, the choice of small, so high prices, plus to Qualcomm's entry fees, technology upgrades fees, overall down the production cost of CDMA mobile phone is much higher than GSM. and CDMA mobile phone mainly rely on the introduction of Korea's technology to carry out the OEM, small profits, market risk is also large.

Last year Unicom's subsidy policy for mobile phones better promoted handset production, but did not nurture a virtuous industrial chain, but relied too much on Unicom's policy. The leading CDMA mobile phone distribution is the Unicom itself and several national underwriters, the current Unicom has withdrawn from the distribution market, the main underwriters are optimistic about Samsung, Motorola and other international manufacturers of products, not very interested in domestic mobile phones. In this way, in the CDMA market, the domestic mobile phone's independent marketing team is very difficult to play a role, on the one hand, the high cost of mobile phones, price reduction space is not, on the other hand, CDMA mobile phone sales and Unicom's policy is closely linked, operating inflexible

Therefore, should reshape the domestic handset manufacturer's industrial model, forms can with the foreign brand confrontation strength.

Leveraging channel sales to promote business promotion

If the competition between mobile and Unicom is the competition of business, it is the competition of marketing channel of two big mobile operators. China Unicom also stepped up its cooperation with the Chinese postal service as it moved into the Gome chain in a high-profile move to the business hall. Not long ago, Unicom decided to use China Post's operating channels to expand the business to the township level, vigorously develop CDMA. China Unicom's business outlets are currently only able to reach the county level, in the township is still a blank, and China post national business outlets have been all over the grassroots township. Through cooperation, the two sides will increase the postal agent Unicom business outlets, in the market demand and the conditions of the region can establish a fully equipped postal agent Unicom Business Hall, the establishment of CDMA and other Unicom products stores. In this way, Unicom can use the postal network to its own business throughout the country. Through the expansion of the channel, the business and terminal products more quickly to users, is a rapid development of CDMA a convenient way. Bundling mode will still be active domestic brands to form confrontation CDMA 1X Terminal Market analysis

Through the expansion of channels, the business and end products more quickly to users, it is a fast development of CDMA a convenient way.