Given Spreadtrum's strong ties to China Mobile, this company is well position in the future to take advantage of China's Mobile user base, with its reported 655 million mobile subscribers, which is 66.4% of the overall market in China. So in terms of a wide user base, they've got a tremendous advantage.
Interesting facts related to the 3G market:
3G users totaled 54 million, AHEAD of China Unicom (43.1 million) and AHEAD of China Telecom (38.7 million).
Expectations are that China Mobile will drive the bulk of 3G user increase by adding more midrange and lower-end smartphones, including those that are priced at around CNY 1,000 ($160).
SPRD's revenue jump that surprised analyst was a 39% increase in sales of its 2G/2.5G along with 105% jump in 3G chips
China Mobile has outperformed peers China Unicom and China Telecom so far in 2012, posting an 8.5% gain, compared with a 3.9% gain of China Telecom and a 12.5% loss of China Unicom, partly due to renewed investor interest given the carrier's 4G outlook.
This posting sounds more like a promotion for the wireless carriers. Investors should consider buying stocks of companies at the top of the food chain. SPRD is at the bottom. SPRD will have to continue to kiss butts and bribe whoever they need to bribe to sell products. SPRD can easily be replaced unless they start building a political barrier to keep competitions out.