An opportunity appeared after industry throes xpPhone planned to establish a 1,500-mu production base in Yiyang, Hunan
2010 is an extraordinary year for China’s OEM manufacturing industry committed to becoming the “world factory”, especially the electronics manufacturing industry based on Pearl River Delta, which is undergoing a historical process from throes to rebirth. The implementation of the new “Labor Contract Law” and the increase in labor costs lead to the reflection about the simple “OEM” mode, and the responses of many representative enterprises also show the future direction of development and transformation for the industry – northward migration of the OEM industry and independent research and innovation; meanwhile, this process also breeds new opportunities.
Not long ago, I heard that xpPhone, as the creator of the product integrating notebook, mobile phone and GPS into one, will publish a big news soon, which is important enough to affect the global smartphone industry, and now, the mysterious veil is finally lifted – “The 1,500-mu production base established by xpPhone with huge investments in Yiyang, Hunan will be put into trial operation, and it is expected that this large-scale base integrating smartphone research, development, testing and production can provide an annual production capacity of 75 million sets after being put into full operation, and become an important participant in the global smartphone R & D and manufacturing industry chain!”
Build a new “Silicon Valley” in the smartphone industry chain – xpPhone’s global perspective
From a global perspective, the IDC’s statistics report shows that the number of smartphones sold this year totals 269,600,000 sets, and it was 173,500,000 sets in 2009. It is estimated that up to 500,000,000 sets will be sold in 2011, accounting for 25% to 27% of the total sales volume of mobile phones (1,450,000,000-1,550,000,000), and the smartphones may see explosive growth, thus becoming the most popular way of Internet access. xpPhone has the same view as IDC with respect to the forthcoming explosive growth in smartphones and finds the great opportunities contained in the global smartphone research, development and OEM manufacturing industry chain. This is precisely the source of confidence for xpPhone to make huge investments in building the 1,500-mu research, development and production base.
It is reported that the production base planned by xpPhone in Yiyang, Hunan covers an area of 1,500 mu with an investment of RMB 1.5 billion. With respect to the production scale, its SMT lines will be expanded from the current 24 to 160, and its assembly lines will reach 500. After the completion of commissioning of all the equipment, the production base will provide more than 20,000 local jobs with an annual production capacity of 75 million sets, and rank among the top three in terms of the global smartphone OEM production capacity. Meanwhile, the previously unknown Yiyang, Hunan will also become the "Silicon Valley" of smartphones attracting the global attention!
Opportunities for national enterprises in the industrial transformation, laying equal emphasis on both R & D and production
xpPhone is widely known for its integration of “notebook, mobile phone and GPS”. xpPhone made an impressive debut in reliance on its size, weight, long batter life and its ability to run the Windows XP System, even the latest Windows7 System. The new base of xpPhone in Yiyang, Hunan also demonstrates its considerable investment and planning for R & D and innovation. One large-scale international ORT laboratory and three R & D centers will shoulder the important task for xpPhone to win in the innovation competition of smartphones. In contrast to the traditional OEM processing of low value-added electronic products, the high value-added ODM industry integrating its own R & D and innovation will be the vitality of xpPhone.
At present, China is the world’s largest consumer of mobile communication terminals, but due to the significant difference in the structural levels of consumers, the market share of smartphones is less than 10%. In comparison with 40% market share of smartphones in the developed countries in Europe and America, a huge growth space exits in China; with the growth spurt of smartphones, the huge market capacity will significantly reduce the development costs of upstream chipset and system platform of the industry, and the price coverage of the end products of the entire industry will be more comprehensive. Then, the forecast that the shipments of smartphones will occupy half or more of that of all mobile phones is not an exaggeration; meanwhile, the potential of smartphone market in China will also break out significantly, bringing huge profits for the forward-looking and well-prepared companies. |
