The article ‘China white-box handset market decline’ was written by Peter Clarke on June 22, 2011 in the EE Times. It is a detailed report on the decline in its market with close to 90 percent cancellation of 3G handsets. The article is based on the structural problems that have been affecting the TD-SCDMA handsets by China mobile and how the company has been depreciating in profits which have led to a decline in markets. According to Nomura Equity research, China Mobile is facing problems in regards to the structure and organization which has led to its failure in the market.
What I like about the article is that it shows clearly that in the past the manufacturers of TD-SCDMA 3G handsets had been warned on the expected loss by the first half of the year, which was issued on the 17th of June but did not heed to the warning (Clarke 2). SIM Technology Group blames the loss on reduced demand for the products in the open market. It is also clear that the failure was expected due to the fact that in May there was a 50 percent reduction in 2G phone revenue. Also the cancellation of several TD-SCDMA projects means China Mobile should take the past events and use them as an illustration and be more careful. I also like that even the C.E.O acknowledged that the market of the company is dropping significantly.
What I do not like is the fact that the profit warnings issued to China mobile were not issued as early as possible which is a good explanation for some of the losses experienced. The SIM Technology group should have ensured that they had sent the warning on time for the company to take the required action. I also did not like that Longcheer a major design house had made layoffs in its company in the recent past. This was a blow to the mobile industry. Also the recurring lawsuits must have affected the markets and hence the loss. In totality the mobile industry being a part of electronic engineering should be taken care in order to ensure originality and maximum profits.
Work Cited
Clarke, Peter. China White-box handset market decline. EE Times, 22 June 2011. Web. 23 June
2011. (http://www.eetimes.com/electronics-news/4217162/China-white-box-handset)
