PC Giants Crossover into Cell Phone Business
The world’s second-largest PC giant Dell surprisingly started to engage in the cell phone industry. More surprising is that Dell actually chose the Chinese market, the China Mobile OPhone platform to launch their smart phones. What is happening, are these PC giants starting to switch to the mobile phone business?
Large market, irresistible temptation of profits
Although the competition in the mobile phone market is intense, the smart phone market is still very attractive for PC giants. According to market research firm NPD’s latest figures, in the second quarter of 2009, the smart phone sales has continued the momentum of rapid growth of the previous period. The data show that in the second quarter, the sales of smart phones sold worldwide has gained an increase of 47% compared with last year, and is now accounted for 28% of total sales volume of mobile phones. Particularly noticeable is that when the average price of mobile phone has fallen to $87 U.S. dollars, smart phones are still able to maintain the level of $150 U.S. dollars, with a gross profit margin of over 25%, a figure of sure fatal attraction to the PC manufacturers whose gross profit margin has been less than 10%.
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