This is not about China, although that is where the story is based, it is about how the world will communicate. And that it using 3G handsets. The figures are quite remarkable.

First know that well over 90% of all mobile phones are made in China. No one knows the precise figure but it is not that far from 100%. But, to be safe, stay with 90%.

According to a survey conducted recently by CCID Data 77% of Chinese mobile phone users in China said that they will purchase 3G handsets in the future. That is most Chinese mobile phone users in China want to watch pictures as well as talk on the phone.

The figures now start to pile up.

According to Minister of the Information Industry, Wang Xudong, there will be 900 million mobile phones in use in China at the end of this year.

77% of that is about 700 million odd 3G empowered mobiles. Divide that by any figure you like and it is still an immense potential market. Arguably, the biggest in the world.

The manufacturers in China will therefore be set-up in one of the most competitive industries produce 3G empowered mobiles because 700 million units is a persuasive argument.

The phone producers around the world will find that it is easier and less expensive to go with the flow. If the factories are producing 700 million mobile phones extending the production lines will be easy and the 3G empowered mobiles will be the best price product.

In China, Minister of the Information Industry Wang Xudong said (and who would know better?) that non-voice-service income will account for 30% of the total telecom industry income in 2007, compared with the current 26%. In other words 3G empowered machines will not just sell a lot, they will make a lot of money for the mobile service providers.

Given all of that information and extending it worldwide it is easy to work out that the cost of a 3G phone will be almost an irrelevancy.

What will cost more will be mobile phones which do audio only.

So they will die. Soon. For certain sure.

Related:

Entry was posted on Sunday, January 7th, 2007 at 10:28 am under Cell phones.

Read more entries by Gareth Powell.
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