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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 126

China Business Intelligence No. 126

Samsung Economic Research Institute Beijing Office

July 22, 2009

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I. Economy

The Ministry of Information Industry (MII)'s China Telecommunication Technology Lab (CTTL) revealed plans to permit and license WiFi in addition to WAPI as China's national standard for wireless LAN. Once the government permits the use of WiFi phones, the scale of China's mobile and Internet industry as well as investment will show considerable growth. China Telecom will benefit the most from the launch of WiFi once they launch ‘Tianyi'. ‘Tianyi' is a new brand which will incorporate both CDMA and WiFi and has the potential to absorb the majority of WiFi users in China.

II. Industry

Sharp Phones, which re-entered the Chinese mobile phone market in June 2008, has established a clear position as the new brand of unique Japanese mobile phone. Over the past year, Sharp launched a total of seven models (four high-end products and three mid-priced models) in China. In March 2009, Sharp succeeded in ranking in the top 15 in terms of mobile phone sales volume. However, there are a handful of factors that restrict the further growth of Sharp Phone in China.

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