Opinion

The competitive cell phone market begins to use SNS functions to increase sales

By Sun Xiaofei (China Daily)
Updated: 2009-12-14 08:01
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The competitive cell phone market begins to use SNS functions to increase sales

A Nokia 3G cell phone is displayed in a 3G mobile phone store in Bozhou, Anhui province. Cell phone manufacturers, Internet service providers, and telecom operators are in fierce competition to secure a foothold in the country's 3G market. [Asianewsphoto]

Cell phone manufacturers, Internet service providers, and telecom operators are in fierce competition to secure a foothold in the 3G market.

Cell phone makers are now distributing cell phones with the Social Network Service (SNS) function.

The penetration of 3G paves the way for new competition in the mobile Internet market.

The competitive cell phone market begins to use SNS functions to increase sales

In January, the Ministry of Industry and Information Technology issued 3G licenses to telecom operators such as China Mobile, China Telecom and China Unicom, officially declaring the start of the 3G era in China.

As transmission of massive data became possible, the mobile Internet market also expanded. According to data released by the Ministry of Industry and Information Technology, the number of cell phone users was 720 million in the third quarter of 2009, and the number of Internet service users increased by 12 percent year-on-year to reach 360 million.

SNS providers such as Facebook and Kaixin are rapidly growing, as is the SNS market. According to market researcher Hitwise, Facebook's market share in the US social networking market rose by 40 percent to reach 59 percent in September.

In China, Kaixin and Renren are emerging as strong players. Kaixin, which opened in March 2008, already has 60 million subscribers, and 200 thousand new people subscribe to the site every day.

Large cell phone makers also released cell phones with the SNS function. In June 2009, Sony Ericsson released SNS-enabled cell phones embedded with Kaixin's program.

In October, Ericsson formed a strategic alliance with Kaixin and decided to expand its services. At the 2009 International Telecommunications Fair, Samsung showcased Corby, which adopted the Renren service for the Chinese market.

Samsung already had introduced cell phones that adopted Facebook and MySpace services for the US and European markets.

Nokia also introduced new cell phones with the Facebook service. Motorola is expected to release SNS cell phones in cooperation with Chinese SNS providers.

A new medium

Cell phones with the SNS function have emerged as the new medium of social networking. Cell phones have portability and overcome the spatial limitations of the Internet.

And SNS complements the limitations of one-way communication. Therefore, the convergence of cell phones and SNS provides an optimal space for personal communication, which combines both privacy and the openness of the Internet.

SNS' design and entertainment function appeal to its users who comprise mostly young people. Cell phone makers have enhanced brand loyalty by providing the SNS service.

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