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

China Mobile Communications Development for 20 years, mobile terminal development of the industry was only ten years. This decade, China’s mobile phone industry is experiencing market share from zero to half of the glory, but also experienced the pain of inventory backlog funding strand breaks, but struggled in ups and downs, one from the chip to the operating system, attention software from the platform to the , from program design to machine-made completely autonomous mobile industrial chain has been formed.

China-made mobile phone in early spring

China’s mobile phone industry, are able to come today, the formation of the terminal market, foreign brands to compete with the situation, in the upstream and downstream to form a relatively complete industrial chain, fully benefited from the Chinese Regime in 1998 brewing in view of the fact that 1999 implemented policies.

Prior to 1999, China’s mobile phone market is monopolized by international brands, Motorola, Nokia, Ericsson is the market’s major brands, all cell phones need to be imported.

The Ministry of Information Industry was established in 1998 to change this situation shoulder the historic mission. In 1999, China started to identify strongly support the policy of domestic mobile phone market, mainly took out 400 million yuan from the treasury to support a particular technological and economic strength of the mobile phone production enterprises, Ministry of Information Industry allocated from the mobile phone network expenditure 14 million to support the development of domestic mobile phone business, while the state has five years of early installation fee from a fixed telephone to extract 5% in support of the domestic mobile phone investigate and industrialization of the special funding.

Matched with this, and at that time issued an vital document – “V document”, the specific reference to “strictly control the mobile communications product project project examination and approval,” and that “the production of mobile phones into the national guidance Plot. ”

“V document” form for a very long time the leading domestic mobile phone production “license” system. In Development 2005, before the domestic mobile phone market has 49 licenses: one GSM mobile phone licenses, 30, was sent to 13 joint ventures and 17 domestic enterprises; CDMA mobile phone licenses, 19, 1 8 was sent to domestic enterprises and joint ventures, only one was sent to foreign Motorola’s; has 14 companies with both GSM and CDMA licenses obtained. In addition to strictly control the import of foreign mobile communications products, the Ministry of Information Industry also provides mobile phone exports of foreign-funded enterprises currently account for total capacity of at least 60%.

Country’s support policies to bring the spring home-made mobile phones in 2003, the domestic mobile phone market more than 7000 million of total sales, the domestic mobile phone fiscal statement for more than 55%, to the development description of domestic mobile phone market share high.

The rapid expansion of the market sentiment attracted more companies to enter the field of mobile phones, many enterprises in the case of unsuccessful attention for a license to OEM, etc., in this regard makes the part of the licensed enterprise “a touch for nothing” and it is not conducive to market regulation. By the end of 2004, as “V document” time has come to the entry into break down, the state chose to implement the many years of “license” system into mobile phone production “approval system.” February 19, 2005, three days after the Spring Festival holiday, the National Development and Reform Commission issued a “mobile communication system and terminal investment projects approved by a number of provisions.” China’s mobile phone industry, embarked on another track.

Evolution of two generations of the three companies made

So far, it can be said of domestic mobile phone industry has experienced two generations of mobile phone manufacturers. Generally speaking, pre-approval system to obtain a license for the first-generation businesses, in Development 2005 after the adoption of the approved enterprises engaged in production of second-generation mobile phone business.

This is because the market in which two generations of business background, industry background, as well as their backgrounds are different in terms of operating and market performance is also very different. Of course, as some enterprises themselves are also changing as the background constantly adjust themselves to the abstract summarizes the characteristics of these two generations, business is not simple, it is best to first know the development process of domestic mobile phone enterprises.

The first phase, 2002 years ago. Many broadcast are willing to trade in view of the fact that 1999, but I believe that should be able to go back, which is China’s mobile phone industry, dormant period.

This stage, the relevant functional departments in the regime a series of supportive policies, the large number of enterprises have also seen the possibility of the mobile phone market, to do, “the Chinese broadcast’s own mobile phone.” In 1999, before the special, a number of enterprises dedicated to mobile phone investigate and development, such as Zhejiang, Eastern Communications in 1997 in Silicon Valley in the United States invested a mobile phone R & D base; 1998 Kejian sent six broadcast to the United States COMQUEST companies R & D team; a joint venture plant background domestic firms by foreign brands mobile phones of the production process of investigate and study and develop its own team of engineers.

The early transfer fee patents millions of dollars at every turn, ZTE, Kejian, Konka, Huawei and other domestic enterprises to carry out a large number of system integration program development, including COMQUEST program, Lucent Technologies program, BORDCOM program, AD I program, TI Program , PHILIPS program, SKYWORKS program, Infineon programs, etc., to cultivate a large number of mobile phone technologies such as R & D engineers in the field laid the foundation for China’s domestic mobile phone enterprises technological accumulation period.

From the end of 1998, a number of self-determining investigate and development of mobile phones one after another in Dongxin, Kejian, Capitel advent of laboratory and other enterprises. But in the market, this time the majority of domestic mobile phone or in MKD (the introduction of machine methods), SKD (large CKD), or the use of mobile phone communication module approach to production and processing. The share of domestic mobile phones is still in the stage of a gradual climb.

The second phase, from 2002 to 2004. The author is willing to be known as the “hero of the bush phase”, because at this stage, domestic mobile phone fortunate to catch up with consumer demand in China’s mobile communications during a large outbreak, coupled with domestic mobile phone to play a localized edge channels and the use of suitable conditions marketing, the share of domestic mobile phones has been rising. In 2002, domestic mobile phone snatched 30% of the domestic mobile phone market share; in 2003, this figure soared to 55%, reaching a record high.

But the glory has come too early, not yet able to grasp the domestic mobile phone R & D capabilities, but also had time to sort out the loopholes in the management, it is not so much an opportunity as it is a test. Domestic mobile phone sales has been steadily rising in the circumstances, on the one hand a large number of stocking, to continue the introduction of complete sets of components; the one hand, Bird, TCL, the South High-tech and other enterprises, but also have their own acquisition of mobile phone development platform, for system integration development, an attempt to fill the shortage of technology . This phase of China-made mobile phones, is made by current events, “Heroes” can be a excellent first-class situation expire, struggle, environmental degradation, “bush” period of vulnerability on the evolution of the huge hole.

The third phase, 2004-present. This is the stage of adjustment and balanced. In the above hidden under the 2004 decline in share of domestic mobile phones, retreated to 50% do not speak, but also there was defeated in 2006, fell to 28% below. At the same time, some enterprises have been a fiscal strand breaks, end, simple to master, coaching change or even shut down the situation, once a brilliant brands such as Kejian, Panda, Capitel, Eastcom, Soutec have withdrawn from the market, there are some ancient brands, such as the Bird, TCL, Konka started to adjust its strategies. In this session, there had been some impact on possibility patterns of mobile phone industry, the factors that make the whole industry further into the stage of adjustment and reserves, namely: approval system, black cell phones and 3G technology.

Approval system and black mobile phones are linked to some extent, it also said earlier the birth of a second-generation Chinese-made mobile phones. Now re-run these two generations of mobile phone features, the first generation of business because it is “license” system a small more than a product of the sense of mission, to large enterprises, operating system, not as excellent as the second generation of less flexible; second-generation mobile phone enterprises to the confidential hub-based, profit goals are more clear, pragmatic and responsive corporate polish, but because of the lack of sense of national mobile phone industry, is hard to see it invest in R & D, etc., to adapt to these more “eco-chain operations” of the mobile phone business Can a real and strong, with international brands Bipin is still unknown.

Industrial ecological chain from the “core” perfect

Although the pattern of domestic mobile phones is still evolving, but it can by now estimate, domestic mobile phone will eventually occupy the domestic and comprehensive markets, an vital position. At the same time, on the Ready-made mobile phones, development, and then gathered momentum in the process, a complete autonomous mobile phone industry chain has been formed.

Design is the mobile phone industry an vital link in the chain. The end of 2001, early 2002, China’s mobile phone design company (desig nhouse) sprouted up to Beijing, Shanghai and Shenzhen for the center, formed a design company co-existence of dozens of the situation, these companies developed a direct result of is to make a large number of South Korean, Japanese design company to close down. Mobile phone design industry peaked in 2005, of which TechFaith Wireless, the dragon flag, Rahim, such as 3-pass success in overseas listed companies, represented by. According to incomplete data, in China’s mobile phone design company in size Ba Jiubai home, only the size of Shenzhen, there are three or four hundred at home.

Cell phone chip is the core of the ecological chain. When mobile phones are the lifeline of the company’s center of gravity went from the design time of chips, China domestic mobile phone chip design development and the underlying hardware, software protocol stack design and development has been developed from scratch, and gradually grown. Today, the real China’s “core” of the mobile phone market is by now a minority in China. Spreadtrum established in 2001 is the domestic market is currently amongst the top three of the baseband processor providers, Spreadtrum thus be listed on Nasdaq. In addition, Chipnuts, Anyka multimedia processors and other enterprises have also been applied to a new generation of home-made phone.

Other mobile phone industry chain in the innumerable vital parts, such as resistors, capacitors, inductors and other electronic devices, have been gradually localization, battery batteries, battery package, charger, earphone and other accessories has been completely attached to localization; Speaker, Receiver, Mi – crophone and other electro-acoustic devices, trembling motor, side buttons, I / O jack, headphone jack, SIM card connector and other components are also largely domestically; mobile phone displays and other components there are by now local companies export to the domestic mobile phone enterprises. These essential components of products, there are many companies because of their excellent quality products and brilliant value for money, but also into the Motorola and other large international companies purchasing lists of companies at a loss to South Korea and Japan.

At the same time, domestic mobile phone production as well as ancillary peripheral industry group has also been rapid development of the SMT from the front to the back-end processing and assembly, not only every major mobile phone manufacturers a complete production line, but also to the Pearl River Delta, Yangtze River Delta cities of Dongguan and Suzhou 2 the central area of radiation out of the 1000 SMT factory, mold manufacturing and coating plant and processing plant. Recently, with the establishment of BYD, and Techfaith Wireless companies than Germany, but also a major international brands for OEM EMS plant may be born.

Decade, the achievements of a such a large and complete the ecological background, perhaps only China can.

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