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Rumor: China Mobile to Sell RMB 100 TD-SCDMA Handset

Sohu IT, 5/29/12

The winning models in China Mobile's (NYSE: CHL; 0941.HK) Q2 2012 TD-SCDMA handset tender reportedly include two multimedia smartphones starting at RMB 900, as well as 2 feature phones priced over RMB 100 that are expect to be bundled with a RMB 199 per month calling plan; a CMMB TD-SCDMA mass-market smartphone costing under RMB 300; and two mass-market smartphones priced at RMB 400 and RMB 500.

The 6 mln unit tender will include 2.4 mln units of the latter three mass-market smartphone models, 1.6 mln units of the two multimedia smartphone models, and 2 mln units of the two feature phone models.

The low price point was one reason no overseas vendors participated in the tender, according to an industry source. A number of handset manufacturers previously said they were unable to bid due to the low price point, which also makes it difficult for TD-SCDMA chipmakers and handset design firms to profit from the order.

Editor's Note: For more background on this topic, please see "Rumor: China Mobile Announces TD-SCDMA Handset Tender Winners" MD 5/28/12 issue.

Keywords: procurement China Mobile feature phone handset smartphone wireless CMMB CHL TD-SCDMA 0941.HK mobile phone TV pricing bundling handset model

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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