Research and Markets: In 2008, the Profit Margin of Mobile Phone Industry Will Drop to an Estimated 3% States the 2007 China Mobile Phone Design House Report

Business Wire,  June 12, 2008  

Tags: cell phone, China Mobile Ltd., mobile, profit margin

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DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/research/151fb3/china_mobile_phone) has announced the addition of the "China Mobile Phone Design House Report, 2007" report to their offering.

Mobile phone design is to offer an integrated design solution from mobile phone hardware design to application software design, man machine interface (MMI), mobile phone style design and mobile phone mechanical design.

The shortened lifecycle of mobile phone design and a great number of price wars give birth to more and more mobile phone design houses.

In 1999, China Electronics Corporation (CEC) merged and acquired Philips Mobile R&D Center and set up the first mobile phone design house in China - CEC Wireless Inc. (CECW).

The mobile phone design industry was basically monopolized by Korean and Taiwan enterprises before 2003. Most mobile phone design houses in China were registered in 2002, but were not widely known and accepted by the market until 2003.

As China's local CECW, Ginwave Tech and TechFaith started capturing markets since 2003, profit margin of mobile phone design industry saw a decline, but still as high as 70%.

Since 2004, the growth of the mobile phone market in China has gradually slowed down. Moreover, the market share of indigenous brand mobile manufacturers has been declining, and profit-making model of mobile phone design house changed from instantiation model to shipment-based commission model, which was one of the main causes of industrial profit margin falling to 35%.

In 2005, the average profit margin of China mobile phone design industry continued to decrease to around 23%, which was caused by its lower technical threshold.

In 2006, along with the wide application of MTK Turnkey Solution model and entry of more and more competitors, China mobile phone design houses, after a boom in 2004 and 2005, began to slide into downturn, with average profit margin down to 15%.

In 2007, the profit margin of mobile phone industry will drop to below 5.1% and even no more than estimated 3% in 2008.

Key Topics Covered:

1 Brief Introduction to Mobile Phone Design

2 Mobile Phone Design Platforms

3 Mobile Phone Design Houses

4 Mobile Phone Design Houses Research

5 Analysis of Mobile Phone ODMs Design Capacity

6 Analysis of Mobile Phone Brand Manufacturers Design Capacity

7. Analysis of New Mobile License-Gained Manufacturers Design Capacity

8 Trends of Mobile Phone Design Industry

9 Conclusions

List of Charts

Companies Mentioned:

TechFaith

CECW

SIMCOM

Long Cheer

Ginwave Tech

Yuhua TelTech (Shanghai)

Wanzhong (Shenzhen)

E28 (Shanghai) Limited

Elitek

Sunplus

Huntel

DCwireless

Unitone

ZEUS

Truetel

CEC

COSMOBIC

Mobicom

Webook

Keben Telecom

Paragon Telecom

Siecom

Contractor Communic

For more information visit http://www.researchandmarkets.com/research/151fb3/china_mobile_phone

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