CCID Consulting: China’s Mobile Internet Industry Sees Equal Strengths in South and North with Rise in West

BEIJING--()--Mobile Internet, an integral part of the new-generation information technology, has been recognized as one of China’s strategic emerging industries and given priority by China’s Ministry of Information and Technology in its 12th Five-Year Plan scheme. As such, CCID Consulting has drawn a map of China’s mobile Internet industry in the coming years based on analyses on its current characteristics and growth trends.

Equal Strengths in South and North with Rise in West; Guangdong Province Taking the Lead

In 2010, China’s mobile Internet industrial recorded an output value of RMB 293.69 billion, to which the four major regions, namely the Pearl River Delta in the south, the Circum-Bohai Sea in the north, the Yangtze River Delta in the east and the West Triangle centered on Chengdu, Chongqing and Xi’an, contributed over 90 percent.

Figure 1 China’s Mobile Internet Industry Size
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Source: CCID Consulting Mobile Internet Industry Database, May 2011

In China, Guangdong Province is the champion in the mobile Internet industry with an annual output value of more than RMB 100 billion leveraging its strength in terminal manufacturing; the Circum-Bohai Sea is China’s second largest mobile Internet base with significant strengths in mobile terminal manufacturing, mobile Internet software and services; the Yangtze River Delta is also of great importance to China’s mobile Internet industry, which is strong in mobile Internet-related software and services, but relatively weak in terminal manufacturing; the West Triangle is enjoying the greatest growth potential in China’s mobile Internet industry.

“One Belt Plus One Triangle”

The layout of China’s mobile Internet industry is described as “One Belt (the Circum-Bohai Sea, the Yangtze River Delta and the Pearl River Delta in a line) Plus One Triangle (the West Triangle)”. The major cities on “One Belt Plus One Triangle”, including Beijing, Guangzhou, Shenzhen and Hangzhou in the east and Chongqing, Chengdu and Xi’an in the west, are all well equipped in industrial development conditions to support the mobile Internet industry

Figure 2 Key Cities of China’s Mobile Internet Industry
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Source: CCID Consulting Mobile Internet Industry Database, May 2011

Overall Development with Highlighted Clusters and Evolution in Echelons in Future

In the coming decade, China’s mobile Internet industry will usher in an age of overall development as its industrialization advances to facilitate the transformation of the telecommunications and Internet industries, while the existing industrial clusters will remain the focuses of the industry.

Meanwhile, the evolution of the mobile Internet industry will feature multiple echelons at different growth levels. The first echelon will include the Circum-Bohai Sea, the Yangtze River Delta and the West Triangle, with Beijing, Shanghai, Hangzhou, Shenzhen, Guangzhou, Chengdu, and Chongqing staying in a leading position in the fields of mobile terminal design & manufacturing, mobile software and application R&D. Wuhan, Zhengzhou, Changsha, Xiamen and other second-tier major cities located in the second echelon of Wuhan-Changsha Cluster and the Western Taiwan Straits Economic Zone will specialize in mobile terminal manufacturing and mobile software and application development. Other provinces and regions including Yunnan, Guangxi, Shanxi, Inner Mongolia, Gansu and Ningxia will start with infrastructures construction and promote mobile Internet applications with the local governments and operators playing a major role.

Mobile Terminal Manufacturing Sector to Shift to Lower-cost North and West

As the comprehensive cost in coastal cities stay high, the cost-sensitive mobile terminal manufacturing sector has accelerated its shift to Central and Western regions with lower labor and operation costs. For example, the leading OEM Foxconn has shifted part of its capacities to Henan, Shandong, Sichuan and Chongqing. In addition, the related upstream and downstream sectors including chip manufacturing and mold manufacturing will follow the same trend.

Mobile Software and Application Sector to Continue Relying on Industry-Academy-Research-Application Chain

The mobile software and application sector, both intelligence-intensive and capital-intensive, requires educated and highly skilled talents, innovative technologies as well as high market-penetration of software and applications. Hence, of the sector will continue to focus on major cities in the first echelon where the industry, academy, research, and application forces are tightly integrated.

About CCID Consulting Co., Ltd.

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China. With its powerful industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services. The company's customers range from industrial users in electronics, telecommunications, energy, finance and automobile to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming China's No.1 advisor for enterprise management, No.1 consultancy for government decision and No.1 brand for informatization consulting.

Contacts

CCID Consulting Co., Ltd.
Betty Du, +86-10-8855-9080
Coordinating Manager
duyu@ccidconsulting.com
http://en.ccidconsulting.com

Contacts

CCID Consulting Co., Ltd.
Betty Du, +86-10-8855-9080
Coordinating Manager
duyu@ccidconsulting.com
http://en.ccidconsulting.com