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New Demand for Multimedia Mobiles in China

China's multimedia phone market experienced rapid development in 2006 in terms of available models and total shipments, according to the latest In-Stat market study.

The music playback function was the biggest driver to the growth of the multimedia phone market in China last year, the high-tech market research firm says.

"In-Stat's latest survey shows that camera capability is an under-served function for China's phone users, which suggests there is still plenty of room for market growth," says Raymond Yan, In-Stat analyst.

"Future drivers for the multimedia phone market will stem from content availability, continuous improvements in semiconductor solutions, higher data rate wireless technologies, and the combination between mobile phones and web 2.0 networks."

I believe that ultimately the Chinese multimedia phone market will eventually overshadow many of the other developing and developed markets within the Asia-Pacific region. The rapid market development has been beyond even the most optimistic growth projections thus far.

In-Stat's market study found the following:

- Multimedia phone shipments in China will reach 165.0 million in 2011, representing a penetration rate of 81 percent.

- High-pixel camera phones will be the next competitive focus in China's multimedia phone market.

- Mobile phone makers are aiming to change cellphones into transportable personal communication and entertainment centers (as a viable alternative to computer ownership).

- Chinese mobile users show a strong preference for combining MP3 music players with mobile phone devices.

- Around 70 percent of Chinese current music phone and camera phone owners express strong interest in more high-end equipment.

- Chinese mobile users also express strong interest in mobile phones capable of playing video and receiving broadcast TV programming.

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