It Market Environment In China 2000

PC and Communication products growth rapidly

Consumer Electronics and Home Appliance are still stable and growth slowly

The ratio between production rate and Sales out volume is 95. 9%

Export business growth by 38. 9%, which contribute of 28. 7% of the total revenue

Mobile Phone

Produces 16. 48 Mpcs and Sales Out 15.

93 Mpcs

Growth by 140. 8% and 139. 5% respectively, compare to last year

10 local manufacturers produce and sales local brand more than 1 Mpcs in the past 5 months

23 Manufacturers export at 5. 835 Mpcs in the previous 5 months, contribute at 34. 2% of the total

Color Monitor

produce 10. 44 Mpcs and sales out 10.

31 Mpcs

growth by 82. 3 % and 83. 1 respectively, compare to last last 5 Month

Export 5. 617 Mpcs in first 5 Month, which is more than 60% of total output (19 customers)

PABX

Produces 22.

4 Mpcs and Sales Out at 22. 57 Mpcs

Growth by 37% and 38. 8% respectively, compare to last year

Shifting from Central Office used PABX to Mobile Exchange System

ZTE, Tai Tong, Hau

PC System

Produces 2. 88 M set and Sales out 2. 72 M sets

Growth by 105. 5% and 103.

4% respectively

Networking PC will growth as the demand for Networking application increased

Since the component price drops, price pressure for PC is getting great

wei already have export business

Color Monitor

produce 10. 44 Mpcs and sales out 10. 31 Mpcs

growth by 82. 3 % and 83. 1 respectively, compare to last last 5 Month

Export 5. 617 Mpcs in first 5 Month, which is more than 60% of total output (19 customers)

PRC government will focus on top 10 customer only

Existing GSM handphone market are based on JV

Local manufacturers are using CKD / SKY solution

GSM handphone will bloom up as the technology is mature & the total cost is lower

Target cost for Manufacturers are 75 USD

Digital STB in PRC is at starting stage

DVB-C will be used domestic

Some DVB-S will be for export

Market price for a STB set

= Y 2000 (Digital)

= Y 700 (Analogue)

As the function and performance reason, digital STB will replace Analogue STB very soon.