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Chinese cell-phone firms struggle to make a profit (3)

By He Wei (China Daily)

08:26, December 28, 2012

Android is definitely calling the shots in the market, with two-thirds of the cell phones sold in China in 2012 running on the system, according to a recent report from London-based Informa Telecoms & Media, a unit of the research firm Informa UK Ltd.

Analysts agreed that the dual-core processor will prevail in most smartphones in 2013, and the price for quad-core gadgets is likely to drop.

Besides, a larger screen is usually better on phones when it comes to viewing videos, Web surfing and gaming, Li said. While Apple finally upgraded to a 4-inch display for the iPhone 5, high-end Android smart phones had edged above the 4.5-inch mark and beyond.

Another trend observed is the growing role of operator stores as a sales channel for handsets.

Operators will enjoy a 40 percent-plus share of the total mobile handset market by 2014, up from 24 percent in 2008, said Daniel Hui, an associate principal at McKinsey & Co in Hong Kong.

He noticed a growing influence operators have on the mobile retail market, since the release of 3G licenses in 2008.

"Through policies and subsidies, the government is pushing a high subscription target combined with a strong push on 3G technology. This puts Chinese operators in a strong position, and they are using it to expand their presence into other channels, such as by opening counters in consumer electronics stores," he said.


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