Mobile phone giant production accounted for 6 of the world's 4/5 small plant survival precarious

Market research agency Gartner published before predicted that, despite the 2006 mobile phone sales growth rate may be halved, but 2009 is still expected to be sold more than 1 billion global mobile phone, then the total number of mobile phone use will reach 2 billion 600 million. However, due to the fierce competition in the mobile phone manufacturing industry, frequent price war, many small manufacturers profit space is getting smaller and smaller, may face the fate of being eliminated.

New York Times reported Gartner forecast 2005 annual mobile phone sales will be 15.6% higher than in 2004, a total of 800 million approximation. The next 5 years, the Asia Pacific region, the mobile phone market demand will maintain a rapid growth trend, which accounts for the proportion of the global market is expected to increase from the current 1/4 to 2009 1/3.

And current annual sales of about 200 million Taiwan PC and Gartner TV compared analyst Ben Wood believes that mobile phone is still the most profitable global consumer electronics products, but because the manufacturers to enter the market too much, the manufacturers profit margins squeezed by nature.

July 20th announced Q2 earnings Motorola, has 7 consecutive quarters to produce dazzling achievements, but its third quarter growth may be limited; LG for mobile phone sector losses, profits fell 70% over the same period in Q2; Sony Ericsson mobile phone sales have improved, profit fell 16%.

In spite of this, the 3 mobile phone manufacturers, plus NOKIA, Samsung and BenQ Simon, has accounted for the current global mobile phone output 4/5, the remaining part is composed of more than and 50 small food manufacturers, the 6 manufacturers depend on their size advantage is expected to lower procurement costs, direct threat of small plant survival.

Gartner also predicted that the mobile phone will be the average price from $174 in 2004, fell to $161 in 2009, when the cheapest mobile phone price may only $20. It is worth noting that it is still very expensive smartphones will become popular in the future, sales in 2008 is expected to exceed 200 million, the market share of 1/5.