TD handset sales at China Mobile Ltd. (SEHK: 0941, NYSE: CHL) have seen a huge uplift more recently as a result of a passel of promotional and marketing campaigns from offering more customized models and subsidies to launching OPhone, a smartphone running on its proprietary mobile operating system.
Latest statistics from third-party search company Sino Market Research show that China Mobile's TD mobile phone sales soared to 144,600 sets this September from 60,000 in August, pulling ahead of its rivals, China Unicom (SHSE: 600050) and China Telecom (SEHK: 0728, NYSE: CHA), the carriers of CDMA2000 and WCDMA 3G services.
A Sino Market Research report indicates that the high-profile debut of OPhone serves as clear evidence China Mobile has further tightened its control over the industry chain by extending its reach into up-and-downstream of the industry.
And the rally in TD handset sales reflects that China Mobile is seeing a breaking point in TD marketing and portrays as a major stride forward for the Chinese carrier's long-term strategy.
Samsung, ZTE, and CoolPad were the top three suppliers of TD handsets to China Mobile in September. It is worth noting that Chinese domestic TD handset makers' market shares exceeded 55%.
Led by ZTE and CoolPad, Chinese TD handset makers have come a long way in improving the cost performance and increasing the selection of their TD mobile phones in the past year.
In September alone, handset makers such as CoolPad, Samsung, Lenovo, and ZTE came up with some ten TD models, providing China Mobile subscribers with more choices.
Gu Yong, director at the marketing department of CoolPad, expects China Mobile's TD handset sales to reach 500,000 by the yearend.
China Mobile launched TD-SCDMA trial operations in early April 2008 and attracted 52,000 subscribers as of July 1. However, of that number, only 8,000 were substantial subscribers whereas the remaining were trial users provided by China Mobile with SIM cards, TD-SCDMA handsets and subsidies for communication charges.
China Mobile has started to contact local mobile phone stores to open sales channels for TD terminals and more than 400 sales outlets in Beijing and more than 160 stores in Shenyang will soon participate in sales of TD-SCDMA terminals.
Reflecting heightened competition in the mobile landscape, China Mobile said it will continue to increase its investments in sales channels, customer service, network optimization and research and development to enhance its competitiveness.
