Where developing countries are concerned, it just makes economic sense to develop telecommunications systems that can actually reach people where they work and live. Often this means remote farming regions or in the steps of mountain ranges. Add a population base, in developing countries, of 100’s of millions and cellular companies would need to work hard to make money.
China TechFaith Inc., A mobile phone handset designer, has been experiencing high growth over the last two quarters. Generally, this growth can be attributed to the company’s Smartphone and feature phone products which are essentially two phones in one. These products, which have found 60% of sales in China and 40% of sales internationally, are very well received and should continue to be one of the more popular models available. Although technological advance and design trends are always in flux, most find these phones more advantageous because they offer both Global Access and Code Division capabilities, making them more versatile in larger geographic regions.
Although the company expects its primary products to experience a flattening in sales in the second quarter, it is optimistic about future revenue figures. Currently, the company is in talks with Google about its future phone service plans and how it may be a part of it. Given Google’s capital strength, any affiliation will likely bode well for the company.
Judging from recent company statements, indicating that they are expecting a more even balance between Chinese sales and international sales, there is a confidence about its overall position within the handset marketplace. Chinese potential in this area is exceedingly large, given telecommunications infrastructure within the country as a whole, and its need to improve wherever possible. This is even more apparent in outline districts away from its East coast where installation of landlines may be academic. Where cellular in China and, to a certain extent, other developing countries is concerned, this company is becoming well positioned for rapid growth.
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