Big Jump Expected in Chinese Multimedia Phone Market in 2006 as Users Embrace Technologies Reports In-Stat.

SCOTTSDALE, Ariz. -- China's multimedia phone market experienced rapid development in 2006 in terms of available models and total shipments, reports In-Stat (http://www.in-stat.com). 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."

In-Stat research also found the following:

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

* 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 personal communication and entertainment centers.

* Chinese mobile users show a strong preference for combined MP3 players/mobile phones.

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

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

The research, "Multimedia Phone: What is the Next Selling Point?" (#IN0703514CWW), covers the market for multimedia mobile phones in China. It contains forecasts for multimedia phone unit shipments in China, including segmented by airlink, through 2011. It also includes multimedia phone bills of materials for 2006 and 2007. Analysis of feature development trends and semiconductor solution trends, along with overall market barriers and drivers, is provided.

The price is $2,995 (US).

A companion report, "Chinese Users Warmly Embrace Multimedia Phones" (#IN0703900CWW), includes survey data concerning Chinese consumer attitudes toward multimedia capabilities, including music playback, photography, video playback, and broadcast TV receivers. In particular, it includes consumer usage and satisfaction levels with music playback and camera functions. It also surveys consumer willingness to purchase more professional music phones and camera phones and to pay extra for them. Similarly, it explores consumer willingness to have video playback and broadcast TV receivers and to pay extra for these functions and for related services such as video-on-demand and broadcast TV programming.

For more information on this research or to purchase it online, please visit:

http://www.instat.com/catalog/Wcatalogue.asp?id=279 or contact a sales representative:

Eastern North America: Tina Sheltra, 480.609.4531; [e-mail]

Western North America: Erin McKeighan, 480.609.4551; [e-mail]

Outside of North America: http://www.instat.com/sales.asp

This research is part of In-Stat's China Wireless service, which looks at the handset and mobile applications markets in China. These charmed segments have become a strong driving force in advancing China's entire telecom market in addition to driving telecom and even semiconductor manufacturing to new levels. To help global decision makers to decrease the uncertainty of effectively doing business in this dynamic marketplace, this service provides clients with market dynamics analysis, value chain analysis, business models, actionable insights and five-year forecasts.

End-user data is incorporated into each report to better analyze specific market demand in China for smart phones, mobile music, video phones, camera phones, mobile TV, mobile email and mobile media, etc. Data is derived from annual surveys of approximately 1,000 end-users, which provides clients credible data with valid sampling size.

Additional Related Research Includes:

Music Phone Wins But Mobile Music Loses in China

http://www.instat.com/abstract.asp?id=279&SKU=IN0703878CWW

Multimedia Handsets 2007: Will Stingy US Multimedia Phone Users Turn Japanese?

http://www.instat.com/abstract.asp?id=66&SKU=IN0703544WH

About In-Stat

Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's experienced staff and in-depth research to support critical business, product and technology decisions. In-Stat's insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Regular and ongoing end-user demand and primary research surveys underpin much of the analysis, enabling In-Stat to provide incisive market knowledge and guidance on future market opportunities.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.