Chinese Smartphone Brands Shift Focus to 5G Market

(Source: REUTERS/Rafael Marchante)

Three major Chinese telecom operators, China Telecom, China Mobile and China Unicom plan to build a total of 500,000 5G base stations, according to their published investment plans. 

China Telecom and China Unicom seek to jointly establish approximately 250,000 stations, covering cities at the prefecture level and above in China, while China Mobile alone aims for about 250,000 across the country.

Xiao Yaqing from the Ministry of Industry and Information Technology of China, said that China’s current 5G users have exceeded 60 million. 

Chinese smartphone companies are making strategic and structural changes to shift focus to the 5G market. 

Liu Bo, Vice President of OPPO, recently issued an internal letter stating that the company balance will tilt towards 5G in the second half of 2020. 

Liu mentioned that OPPO will enlarge the proportion of 5G mobile phones in its business, with the overall sales expected to surge by more than 30%

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Vivo and Huawei also revealed to Securities Daily that they are adjusting their mobile phone industry structure and cooperating with telecom service providers to expand 5G customized phones in volume as well as launch 5G smartphones in more styles. 

China Mobile predicts that in 2025, the scale of the 5G industry chain market will reach 3.3 trillion yuan. Moreover, the 5G-enabled industries are expected to reach 6.3 trillion yuan in sectors like transportation, manufacturing and entertainment.