Industry Analysis & Industry Trends
With increased use of mobile phones in China in recent years, demand for products from the Communications Terminal Equipment Manufacturing industry in China has previously peaked and is now in its mature phase. In 2011, industry revenue is expected to increase slightly by 4.2% to $9.48 billion. This is compared to the heights of 31.4% growth in 2008 and 33.5% growth in 2005. Over the past five years, the industry experienced an annualized growth rate of 6.8%.
A 5.0% fall in revenue in 2009 was due to the negative effects of the global financial crisis (which started in 2008), weaker pricing levels, and decreasing demand for fixed-line telephones and facsimile machines.... purchase to read more
Industry Report - Industry Investment Chapter
The industry's capital to labor ratio is expected to be 1:2.1 in 2011, which indicates a medium capital intensity level.
The assembly of low-end products is a labor-intensive process that requires a large number of skilled workers. To obtain a license to access telecommunications networks for their products, manufacturers have to employ specialists to ensure product quality meets the license requirements. Additionally, professionals are needed to create differentiated designs.
In high-end product segments, such as digital cordless phones, automatic production lines have been implemented to accelerate output and increase quality levels. As high-end products become more dominant in the market, capital intensity will increase in the industry in future years... purchase to read more