China mobile makers plot summer strategy

Jul 26, 2005

The dog days of summer may be the slow season for cell-phone sales, but Chinese handset makers are launching plans to halt their sliding market share.Companies including Amoi, Ningbo Bird, Dopod and Konka all have drafted marketing campaigns targeting the 18-20 year-old market niche during the months of July and August.

Their back-to-school specials will consist of lowering prices, giveaways with purchases, and new handset models in the low-end price range.As first-time mobile-phone owners, students have keen interest in multi-media functions, even though they (and their parents) do not necessarily have much to spend on phones.Wang Zhiquan, a spokesman for handset maker Amoi in Xiamen, noted the large number of students who recently have finished university entrance examinations and are now preparing to go to college in September.Wang was quoted by the Shenzhen Daily as saying, "they are the potential handset buyers we will target."Amoi has slashed the price of three of its mobile-phone models featuring multi-media functions to around 1,200 Yuan ($148) as part of its summer campaign, Wang told Chinese reporters.One Amoi handset, the M350, features an MP3 player and 128 megabytes of installed memory.The main selling feature on two other phone models, the D80 and D85, are digital cameras.Ningbo Bird, China's largest domestic brand-name mobile-phone maker, also is focusing on students in its summer promotions, launching more than 20 new models.The newspaper quoted a company representative as saying Bird will implement price cuts to attract buyers.Competition among domestic vendors based on price will depend on how aggressive the phone-makers are willing to become.If there are many competing models, price-cutting will be more drastic.In such a case, the Bird representative said, "firms that are bigger and stronger in controlling costs will have the advantage."Ted Dean, one of the managing directors at BDA China, a telecommunications consultancy in Beijing, told United Press International that "back to school sales and marketing schemes are a good idea, but it won't move market share or reverse the damage caused by price cutting."

Domestic cell-phone brands are losing market share to foreign competitors such as industry leaders Nokia and Motorola, both of which are targeting the local firms' traditional stronghold: the low-end segment.They bring to bear better handset design and R&D capabilities for form and function, and are going head-to-head with their low cost competitors.The recent 2 percent revaluation of Chinese currency also will impact local manufacturers' ability to survive in the current mobile-phone marketplace, Dean said.

Copyright 2005 by United Press International

Explore further: Greenland darkening to continue, predicts CCNY expert Marco Tedesco

Related Stories

PlayStation Vita game gadgets debut outside Asia

Feb 22, 2012

Sony's slick PlayStation Vita handheld videogame gadget hit major markets around the world on Wednesday as the Japanese entertainment titan bucked a trend towards play on smartphones.

Review: Gingerbread makes Nexus S a smart cookie

Dec 16, 2010

For some people, the holidays go hand in hand with gingerbread, in the form of houses or cookie-cutter men. This year, you can add smart phones - specifically, the Nexus S, the first device running the freshest ...

Handsets tapping into MP3 market

Jul 14, 2006

Mobile music phones charging onto the music scene could put a dent into the MP3 player market, taking steam away from industry giants Apple and Microsoft. Already, many consumers are snapping up mobile phones that play digital ...

Is Ningbo Bird's goose cooked?

Jul 19, 2005

Ningbo Bird, China's top domestic mobile handset seller, is one of several firms facing intensified competition as the stakes have been raised in the country's high-tech market. China is the largest mobile phone market in ...

Recommended for you

How to alert drivers to fatigue

9 minutes ago

Frank Black is a professional truck driver, having clocked up nearly three decades travelling the breadth of Australia. But every time he gets into his cab, Black thinks about driver fatigue; over the years ...

Protecting our rights to privacy and digital dignity

22 minutes ago

How many of us read the terms and conditions when signing up to a social media account or downloading a new app? And does agreeing to these rules offer us any real protection from big business looking to ...

Energy-tracking app encourages sustainable behaviors

1 hour ago

For a generation motivated by technology and fast-moving information, a professor at the University of Wisconsin-Madison has created an energy-tracking app to make reducing day-to-day energy usage more accessible.

Google big Android Wear update adds functions, fun

2 hours ago

Android Wear's Monday announcement of new features is drawing many compliments from those watching out for what's next in making a smartwatch purchase. The new attractions include the lightness of wearing ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.