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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (4186)	1/16/2005 12:11:38 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Maturing markets and mixed fortunes: a review of China's IT and Telecom industry in 2004 14.01.2005 10:16:00 GMT The Chinese IT and Telecom industry in 2004 would be best described by one word, 'maturity.' A bevy of sectors, ranging from wireless services to Xiaolingtong to mobile phones, saw growth in China slow during the year as their markets matured and competition increased significantly. Another direct result of increased maturity in these markets was the onset of consolidation, as larger players moved to solidify their positions at the head of the pack through acquisitions. Furthermore, as growth in China slowed, 2004 also witnessed leading Chinese technology companies, most notably TCL, Huawei and Lenovo, moving more aggressively into foreign markets. At the same time, however, 2004 also saw a number of other sectors, such as online gaming, reaching a point of critical mass and breaking out into profitability and rapid growth. The success of online gaming, for one, was actually in part the result of increased maturity in China's broadband services market. Previous infrastructure investments by Chinese telecom operators meant that broadband services became more widely available and significantly cheaper in 2004, which was bad news for equipment vendors as Chinese carriers slowed investment during the year, but which in turn also meant that more netizens in China had access to high speed internet connections and the necessary bandwidth to play online games. Although maturing markets have very justly become synonymous with slowed growth, more mature markets should not in anyway be taken as a reduction in potential. Just as quickly as existing markets develop and mature, new markets full of tremendous potential are born. Moreover, it is often the case in the IT and Telecom industry that existing markets must first mature, before even more potentially profitable businesses can begin to reach their full potential. It is for this reason that the word 'Maturity' so well describes the Chinese IT and telecom industry in 2004. Just as some sectors were maturing last year, others were just beginning to hit their stride, while others still were only just beginning to form. interfax.com