At the end of 2010, the total number of mobile phone users in China was 859 million, and the total number of 3G users was 47.1 million; in July 2011, the total number of mobile phone users in China rose to 930 million, of which the total number of 3G users reached 87.2 million. The large-scale growth of mobile users and communication data traffic has prompted telecom operators to continuously optimize and expand their networks.
Shuiqing Muhua Research Center pointed out that in 2011 China's outdoor base station antenna market capacity was about 1.78 million sets, an increase of 26% year-on-year; the indoor base station antenna market capacity was about 16.2 million sets, an increase of 35% year-on-year. China's outdoor base station antenna market is fiercely competitive, and product prices have fallen sharply. Local base station antenna manufacturers account for more than 85% of China's base station antenna market share.
In 2008, China Telecom began to adopt microwave communication system. In the construction of 3G networks, Chinese telecommunications operators have increased their procurement of microwave communication systems. The capacity of the Chinese microwave antenna market in 2010 was 190,000 sets, and in 2011 it was more than 340,000 sets. There are four local manufacturers that can produce high-performance microwave antenna products: Xi'an Putian, Shenglu Communications, Mobi Development, and Guangdong Tongyu.
Benefiting from the development of mobile terminal markets such as smartphones, tablets, notebooks, etc., in 2010, China's mobile terminal communication antenna market capacity was 1.08 billion. In the next three years, the average growth rate of China's mobile terminal antenna market capacity will remain above 15%. The main local mobile terminal antenna manufacturers in China include: Xinwei Communication, Shuo Bei De, Jie Sheng Kang, Kunshan Yaodeng and so on.
Shenglu Communication manufactures all types of antenna products for base stations and terminals, as well as microwave antenna products in various frequency bands from 6GHz to 40GHz, and is the strongest local mobile communication antenna manufacturer. In the first half of 2011, due to the slow progress of investment by Chinese operators, the growth of Shenglu Communications' various products slowed down. Base station antenna business revenue fell 4.4%, and Yagi antenna business revenue fell sharply by 17.4%, while the promising growth rate of microwave antennas and indoor terminal antennas was only 5.2% and 6.8%.
More than 30% of Mobi's revenue comes from ZTE Corporation. In the first half of 2011, the sales of the antenna business developed by Mobi was 124.5 million yuan, a decrease of about 5.9%. Among them, the sales of the multi-band / multi-system antenna business was 29.36 million yuan, an increase of 192.3% over the same period in 2010, mainly due to the substantial increase in overseas demand.
Xi'an Haitian Antenna and Sanyuanda Co., Ltd. jointly invested in the establishment of a new company in August 2011, engaged in mobile communication antenna research and development, manufacturing and sales services. In the first half of 2011, Haitian Antenna's revenue was 27.24 million yuan, a year-on-year increase of 39%, and the loss was reduced to 14.215 million yuan.
Xinwei Communication is currently the only listed company in China specializing in the production of mobile terminal antennas. It accounts for about 1.3% of the global mobile terminal antenna market and about 20% of the Chinese mobile terminal antenna market. In the first half of 2011, Xinwei Telecom's revenue was 72.52 million yuan, an increase of only 10.5%, but the overall gross profit margin rose to 59%, mainly due to Xinwei Telecom's divestiture of low-margin products and customers.
Capacity and growth rate of China's base station antenna market from 2007 to 2013 (unit: million sets)
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