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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SNS is an attractive service at a time when people are paying more attention to proper etiquette in public places and security of communication. As more people frequently change their cell phones, the market distribution rate of SNS cell phones will rise.
China's CCID Consulting projected that more than 50 percent of SNS users in China are prospective customers of SNS cell phones.
As SNS cell phones have a stable customer base, and clear business model, its growth momentum will continue. SNS-related services such as the download of ring tones and images can be offered without much effort. It is also possible to create a new business model in alliance with other businesses.
Telecom operators launched the service for SNS cell phones in recognition of market potential. Beginning in the second half of 2008, major Chinese telecom operators advanced into the SNS market. China Mobile introduced the 139 Community, China Telecom launched China Q and China Unicom introduced U-Power.
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The mobile phone industry needs to set its sights on young customers whose purchasing power has increased.
It is projected that the number of mobile Internet users will exceed the number of Internet users as the service diversifies and the price of using cell phones becomes cheaper.
According to IResearch, the number of cell phone users in China increased in all age brackets, but especially among the younger generation. The amount of mobile Internet use has also increased rapidly. SNS cell phone providers need to grasp the pattern of Internet use and provide differentiated services and products.
To cell phone makers, the SNS cell phone market is valuable in terms of gaining an early mover advantage. The Chinese SNS market is a valuable tool to promote Internet sites to attract more customers.
A lot of investments and efforts are required to create diverse products based on SNS. Therefore, cell phone makers and the SNS industry formed an alliance to gain a foothold in the new cell phone market and expand service into various areas.
It is important that each sector in the industry chain cooperates to increase the number of mobile Internet users.
Handset manufacturers, telecom operators and content providers that are linked in the mobile Internet industry chain need to secure the competitive edge through partnerships.
The author is a researcher with Samsung Economic Research Institute (China). The views expressed here are her own.
