According to the International Telecommunication Union (ITU), demand for cell phone technology will stay strong, especially in emerging economies such as China and India.
The ITU report, which recently appeared in Reuters, says, "With or without a recession millions of people in India, China, Nigeria, and other emerging markets will seek out mobile phones.”
Another report, released from Ipsos, suggests that “in fast-growing urban China, nearly half of urban Chinese households will buy a mobile phone this year.” However, China has experienced a 3% drop off in cell phone sales.
An article from Chinaview.com says that as demand for 3G phones increases, China's mobile phone industry has shown signs of recovery:
China Telecom, one of China's three telecom service providers, has purchased about 10 million CDMA terminals from mobile phone makers… CDMA, or Code Division Multiple Access, is a method for transmitting multiple digital signals simultaneously over the same carrier frequency, and is most widely applied for cell phones…
China has the world's biggest number of cell phone users, exceeding 600 million by the end of July last year, according to the Ministry of Industry and Information Technology.
A report by the China Internet Network Information Center predicts the number will reach 900 million in the next three years. In terms of numbers, more people would be using their mobile phones for Internet access rather than the PCs. This suggests there would be a greater demand for the 3G-based mobiles phones, which integrates wireless communications and the Internet.
But it isn’t just demand for cell phones that’s catching attention in countries like China… it’s the cell phones they manufacture as well.
In fact, according to an article in the People’s Daily Online, “the world's first ‘price-friendly’ solar powered cell phone will go on sale in countries in Central America, the Caribbean and the South Pacific next month.”
The cell phone will sell for an estimated price of just $40 USD. Experts estimate that the cell phone will enjoy a market of 700,000 users in these regions. The article adds, “Globally, among the 1.6 billion people who have no access to electricity, 680 million can afford this cell phone.”
Here’s what makes this cell phone noteworthy: it will be entirely “Chinese-made.”“ There is little difference in the appearance of this black cell phone and an ordinary cell phone. The only distinction is on the back, where there is a rectangle built-in solar panel.”
No doubt the phone will sell in China as well. In fact thanks to the Chinese government’s recent approval of 3G licenses for mobile network operators in its country, the door has been broken down for this type of technology to begin spreading throughout emerging markets around the world.
As an investor you can cash in on the “Chinese 3G phenomenon” by buying shares in the company responsible for producing the 3G smartphones that the majority of China’s citizens could be using.
This telecommunications company has a distinct competitive advantage — a license to bring 3G to 450 million customers across the country. This tech manufacturer has the full weight of the Chinese government behind it. Of course, companies like LG, Samsung and Motorola will attempt to penetrate this market — but China wants its own to succeed first and foremost.
This is the ONLY Chinese 3G phone manufacturer that is publicly traded. So the opportunity for profits is centered squarely on it.
It’s also attractively priced at only around $20 a share right now, thanks to the depressed global market.
Here’s how to learn more about this company.
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