China’s Handset Sales Volume Reached 22.07M Sets in Q2 2006

Analysys International says that China’s handset sales volume reached 22.07 million by the end of the second quarter of 2006, dropping 2.01% over last quarter.

According to the report, China Mobile Terminal Market Quarterly Tracker Q2 2006, released by Analysys International, sales volume of GSM handsets reached 20.51 million sets, dropping 2.01% over last quarter; thanks to China Unicom’s handset customization strategy and further adjustment of channels, the sales volume of CDMA handsets kept on increasing to reach 1.57 million sets, increasing 7.44% over last quarter. Generally speaking, China’s domestic handset makers’ total market share kept on dropping, while the market shares of CDMA handsets of domestic brand increased due to the centralized purchase of China Unicom.

The market concentration of GSM handsets continued increasing. The market share of the first-ladder maker Nokia increased slightly; and Motorola had outstanding performance in the second quarter of 2006 due to its continuously increasing marketing efforts and their customization cooperation with carriers. The total market share of China’s domestic brand handset continued decreasing whereas Lenovo’s handsets still maintained the momentum of rapid growth.

In the CDMA market, total market shares of international makers decreased slightly. Samsung still holds the largest market share, although this dropped a little. Motorola surpassed LG to be the third in market share and advanced its position in the CDMA handset market. Nokia didn’t show satisfactory performance in the CDMA market for a long time, and its market share in the second quarter fell slightly.

Analysys International’s analyst, Juan Lin, thinks the good performance of China’s domestic brand CDMA handsets was mainly due to the increase of China Unicom’s centralized purchase for domestic brand handsets. And as a result, sales volumes of handset makers like ZTE, Hisence, Daxian, Huawei, Kupai increased to different degrees.

Source- http://neasia.nikkeibp.com

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