China’s IT giants focus more on mobile Internet market

May 8, 2012
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Salesgirls take part in the official opening of the Lenovo Exclusive Store in Zagreb/XINHUA
BEIJING, May 8 – China’s IT giants focused more on mobile Internet this year, and the industrial competition would be more intensive, according to a report by Economic Information Daily on Tuesday.

Lenovo Group announced Monday to establish Lenovo (Wuhan) industrial base in Wuhan, the provincial capital of central China’s Hubei province, with a total investment of over five billion yuan over the next five years.

The base, which integrates mobile Internet terminal R&D, manufacture and sale, is expected to finish construction and come on stream by October 2013.

Industrial insiders generally hold that the move of Lenovo shows the IT giant has accelerated the strategy in exploiting mobile Internet market.

Before this, Zhou Hongyi, the president of China’s leading Internet and cell phone security product provider Qihoo 360 Technology (Qihoo 360, QIHU.NYSE), announced May 4 it would cooperate with Chinese manufacturers in rolling out specially supplied smartphones targeting at its own service subscribers at prices with almost no profit.

Zhou said the upcoming three years would be key for the integration of telecommunications and the Internet, free cell phone hard ware would be the general orientation, and value-added Internet service might be the best way to make profit.

Besides these, China-based telecom equipment manufacturer Huawei Technologies linked up with the country’s all three telecom operators in rolling out smartphones of high quality and inexpensive prices, and planned to debut ascend P1S smartphone model, which is said to be world’s thinnest smartphone, in the second quarter.

Chinese IT giants’ recent actions in the mobile Internet sector shows that they have beefed up their efforts to boost their mobile Internet business, and the competition in China’s mobile Internet market will be more intensive, said Wang Yijiang, a senior IT analyst.

Statistics show that by the end of 2011, China’s mobile Internet users reached 431 million, and the figure is expected to surpass 600 million by the end of this year.

Meanwhile, market demand for mobile terminals will rise accordingly. According to market researcher Meraki, the shipments of mobile devices have exceeded PCs and laptops since June 2011.

Under such background, Chinese IT giants’ strategy to move faster into mobile Internet is to follow the industry trend so as to guarantee their business performance in the future.

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