China Debuts US$100 Smart-Phone; May Influence Global Mobile Industry

BEIJING, March 28, 2012 /PRNewswire-Asia/ -- China's mobile phone market is showing a new trend, with the "US$100 cost-effective mobile phone" making its debut in it first.

On March 26th at 3:00 p.m. BJT, Chongqing Guohong Technology Development held a new product presentation meeting in Beijing for its Shuidi handset, at which the company announced the official launch of the handset and its availability at China's shopping website 360buy.com. The new handset incorporates leading-edge technologies including the Android 2.3.5 system and the 800Mhz processor, and its concept of "being a smart-phone costing only US$100" may influence the global mobile industry. The debut of Guohong's Shuidi is expected to cause quite a stir both in China and abroad, according to industry analysts.

U.S. mobile users pay more emphasis on product practicability

The mobile market worldwide has seen increasingly frequent upgrades of products, with the development of science and technology. Over recent years, Apple has set off a craze for smart-phones. Data show that today electronics users pay more emphasis on practicability when choosing products. Most mobile phone users are more concerned with the end-use of a product than with its luxuriousness and brand value. It is believed to be especially true for U.S. users. Americans may be more willing to choose the Shuidi than an Apple handset which features the same functionalities but is more expensive. This reflects a pragmatic attitude. 

China's domestically-made smart phones held a more than 50 per cent share in the domestic market, according to the results of a user survey between H2 2011 and February 2012. Samsung was the number one foreign mobile phone maker in the period, with a market share of 24 per cent, while Apple maintained only a single-digit market share. The dominance of domestically-made phones was extremely rare in the past. The availability of Chongqing Guohong Technology Development's Shuidi phones is expected to further consolidate and improve domestically-made phones' dominance in future.

Prospects for low price, practical phones remain promising

The Shuidi phones will be more best-selling in foreign markets than in the domestic market. Foreign operators are not focusing merely on expensive products. In fact, only few consumers prefer mobile phones with unit price of US$400 produced by Samsung and Apple. China's domestically-made Shuidi featuring the same configurations is priced at only US$100. Chongqing Guohong Technology Development allows consumers to get a top quality product for an unbelievable low price, in a move to grasp larger market share. As for a mobile phone, hardware is important, but the purchase cost, hardware performance, software optimization and cloud application are more important. Considering the similar configurations, cost competitiveness undoubtedly is the key success factor.

Steve Jobs' death has had a profoundly negative effect on Apple, resulting in lower-than-expected sales of iPhone 4s. Apple may need to rebuild its corporate image and reputation among users. However, how could Apple outrival low-price Shuidi, as they have the similar exterior and configurations but the price difference exceeds four times. This may be the most serious challenge posed by China's Shuidi to Apple.

SOURCE Chongqing Guohong Technology Development