China-made mobile phone a dead end it-.docVIP

 PAGE \* MERGEFORMAT 14 China-made mobile phone a dead end it? 1, 2004, domestic mobile phone group landslide! And triumph, too proud in 2003 compared to 2004, domestic mobile phone can be described as a collective realization landslide, were retired, manifested in: 1, the financial situation of overall deterioration. Third quarter of 2004, Kejian reported third-quarter report shows that the overall deterioration of the business indicators, the main business income of 1.522 billion yuan, down 20 percent compared with same period last year, total profits -4612 million, earnings per share -0.38 yuan, down 660 percent over the previous year; Amoi, main business income of 932 million yuan, down 44% in first three quarters of total profits of 45 million yuan, down 91.73 percent; waveguide, the main operating income fell 12.31%; 2, a large backlog of inventory. Overstock occupied by the company’s funds, resulting in tight cash flow. According to incomplete statistics, there are at least 30 million of domestic -4000 million mobile phone inventory. Bird with domestic mobile phone leader, for example, its inventory as of the end of September 2004, the stock value as high as 20.3 billion yuan surged 56.66 percent year on year. Several other leading domestic mobile phone brands TCL, Amoi case, where there exists a large inventory problems; 3, continuous price cuts, product gross margin further reduced. A large backlog of inventory is a direct consequence of lower prices has led to continuous price cuts continue to lower gross margins, resulting in a vicious circle. Amoi mobile phones in the third quarter’s gross margin from the second quarter, 24.5% to 14.5%, Bird declined to 16.8%, other Chinese-made cell phone cases are also similar; 4, the slow pace of new product introductions, lack of bright spots model. The reason hot-made mobile phones in 2003, to a large extent because of domestic mobile phones new models one after another, each leading the trend, such as th