[Thursday 13 December 2012]
China-based telecom service provider, China Mobile, has stated that its 2013 sales target for TD-LTE end devices is to exceed 100 million units and believes smartphones will account for 85%. China Mobile has been strengthening its distribution channels by setting up subsidiaries in 31 provinces in China and building online services.
China Mobile has been focusing on building own-brand handsets, according to Yue Li, company president. But, Lee stated, building an own-brand is not to compete with handset makers.
Using an own-brand, China Mobile can effectively control product specifications and price, which is beneficial to encourage users to upgrade to 3G services.
Li noted that there is the possibility the current sales target could increase from 100 million units to 150-200 million units. According to Li's calculations, China Mobile currently has 700 million users, and, on average, each user switches handset every 23 months, this means each year, there will be 350 million handsets that need to be switched.
well let's make a deal.everything above the 100 mill. units sold will be Nokia's Lumia's
nice sum each year 350,going for a month 350:12 a lousy 30 mill.
and think about the Lumia is brandnew on the Market and the new customer get all those free #$%$. I say 25% will go for the new Lumia..those colours.
Beating Apple in China market penetration is a HUGE deal. The longer Apple delays a deal with China Mobile, the more Nokia benefits. The over saturated American and Euro markets are tiny compared to the potential sales to be had in China and other Emerging Markets.
Even if '12 Q4 earnings doesn't blowout (likely due to Qualcomm Snapdragon S4 supply), Q1 '13 will see the real earnings explosion in China. The critical detail is that Qualcomm has stated that Snapdragon supply should no longer be an issue by the end of December.
Q1 '13 = Chinese New Years + Qualcomm supply resolved + No Apple on CM + CM's promise to push 100MM LTE devices = potential blowout for Q1 '13.