Podcast
Emerging markets' 3G rush drives Qualcomm growth
Updated: 2010-05-13 14:29
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US chip maker Qualcomm Inc said on Wednesday that 3G demand from emerging countries, especially China, was the major driving force behind the company's business during the economic downturn.
The company also expects more partnerships with Chinese technology manufacturers such as Huawei Technologies, ZTE Corp and Lenovo Group, as they more actively expand across the world market.
Bill Davidson, Qualcomm's senior vice president responsible for global marketing and investor relations, said emerging markets such as China and India were the source of the company's growth during the past few quarters.
He said countries like China present wonderful opportunities for 3G growth, as most of the population still lacks mobile access to the Internet.
According to figures from the Ministry of Industry and Information Technology, 3G users increased to 18.08 million by March, after the service was kicked off last year. That roughly accounts for one-fifth of the world's total 3G population.
Davidson also said China's increasing base for 3G users is vital for the development of the world's 3G industry, as China's huge user base will help drive down prices.
"According to our experience, a doubling in product volume will result in a 20 percent reduction in product price," he said.
Last month, Qualcomm reported a fiscal second-quarter profit of $774 million, compared with a loss of $289 million in the year-earlier period. Revenue rose from $2.45 billion to $2.7 billion.
Davidson said the economic downturn could impact the world's transition from 2G to 3G, which enables the use of data-heavy services on cell phones. But in the long term, telecom operators are not likely to increase their investments in 2G.
As the chip supplier for Amazon's popular Kindle, Qualcomm, Davidson said, is interested in China's booming e-book reader market, because it can provide both chipsets and screen technology.
Questions:
1. How many 3G users are in China?
2. What company hopes to tap into China’s 3G market?
3. What would cause the reduction in prices?
Answers:
1. 3G users increased to 18.08 million by March, after the service was kicked off last year.
2. US chip maker Qualcomm.
3. A doubling in product volume will result in a 20 percent reduction in product price.
（中國日報網(wǎng)英語點津 Helen 編輯）
About the broadcaster:
Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is fluent in Korean and has a 2-year-old son.