The explosive growth of China's e-commerce industry has led mobile phone sellers, both at home and abroad, to shift their attention to online channels, and analysts say the change may signal a revolution in the mobile phone industry. Xiaomi Corp, a Beijing-based mobile phone manufacturer that dreams of success like that enjoyed by Apple Inc, has received a lot of attention by selling devices through the Internet since Aug 16, 2011 - the date that Xiaomi introduced its first handset model. By Aug 16, the company had sold 3.52 million Mi-One devices, the first generation of Xiaomi mobile phones. After Xiaomi's huge success in online marketing, most mobile phone brands in the Chinese market have thronged to the e-commerce market to compete for Web buyers. In early July, the Shenzhen-based company introduced the 2,499-yuan ($397) Ascend D1, the first Huawei smartphone that can be purchased only online. Seeing the great potential of online channels, Huawei even set up an e-commerce business unit this year. Huawei aims to ship 60 million smartphones across the globe in 2012, with its total mobile phone shipment reaching 100 million units during the period, said Wan Biao, CEO of Huawei Device Co Ltd, a mobile phone subsidiary of Huawei.
ZTE Corp, the world's fourth-largest mobile phone vendor by shipments, will earn 300 million yuan ($47.6 million) in revenue from selling mobile phones online this year, up from 10 million yuan last year, said He Shiyou, the company's executive vice-president. Taiwan-based HTC Corp, which officially entered the Chinese mainland market two years ago, has lowered its target of constructing 4,000 branded counters in China by the end of this year. About 30 million mobile phones are expected to be sold online in China this year, up 68 percent from 2011, according to a report issued by SINO Market Research.
The online sales will account for 10 percent of total handset purchases this year, up from 2 percent two years ago. More than half of Chinese mobile phone buyers purchased or gathered information about certain handsets over the Internet.
The prices of handsets selling online is on average about 10 percent cheaper than in brick-and-mortar stores, Deng said.
The growing number of Internet users in China, combined with an increasing consumer acceptance of e-commerce, is driving the online sales surge of mobile phones.
China is expected to have 700 million Internet users by 2015, nearly 200 million more than now, and twice the online population of Japan and the US combined. At 193 million online shoppers, the Chinese market is the world's largest, including the US at 170 million, according to a report issued by the Boston Consulting Group. China is likely to surpass the US as the world's biggest online retail market around 2015, as the nation's online retail sales will triple to more than $360 billion that year, the report estimated.

Traditional consumer electronics chain stores, such as Gome Electrical Appliances Holdings Ltd and Suning Appliance Co, have also vowed to take big shares in China's e-commerce industry. Meanwhile, Chinese telecom operators, which distribute almost half of Chinese mobile phones through their self-owned channels, are gradually starting to focus more on expanding their online reach. China Mobile Ltd, the world's biggest telecom operator by subscriber numbers, aims to sell up to 30 percent of its customized mobile phones through e-commerce channels over the next three years, according to Ma Jingxin, deputy general manager of China Mobile Terminal Co, a mobile phone subsidiary of China Mobile.
The current change in China's marketing of mobile phones may have results beyond people's expectations, analysts said.
Cheney Ji, telecom analyst with KPMG China, said online mobile phone retail is going to introduce some big changes to the industry. In the future, if online sales increase in China, device sellers will have an in-depth understanding of customers' requests through direct communications and are likely to differentiate their products to cater for detailed segments of the population, he said.
Xiaomi may probably set an example, as the company holds trials to sell cell phone-related peripheral products on its website, including a cartoon mascot, colorful handset cases and T-shirts. For domestic rivals such as Huawei and ZTE, which hope to become international brands, the e-commerce platform may help them gain bigger market shares outside China. Wang Ying, analyst with Beijing-based research company Analysys International, said online marketing will further shorten the product life span and amplify pros and cons of every mobile phone model. A set of line drawings of hands with smartphones - Internet technologies in the smartphone - Online services in the smartphone - entertainment and business via cloud technologies. I brought this phone with not very high expectations to be honest, but i love it, the lights are wicked, the music can go really loud aswell. I got this phone about a week ago and it works fine and everything apart from the key pad has all cracked and the lights don't work very wellalso it has come apart and i've been very carfull with this phone aswell, i think it's a bit to fragile to be honest but apart from that it's fine, the music plays really loud and it's easy to use!! Tesco has confirmed that its phone shops will stop selling contracts on other networks so it can focus on selling Tesco Mobile products. The supermarket said that it plans to phase out pay monthly offerings on other networks over a transition period expected to last several months. Instead, its Phone Shop will only offer connections with its Tesco Mobile MVNO, which runs on O2’s network, although it will still continue sell pre-paid deals from other providers.
A Tesco spokesperson said the supermarket was liaising with all current supply partners regarding the changes. Xiaomi is the first major Chinese mobile phone company that has adopted e-commerce channels as its major product distribution platform.

Ray Yam, president of HTC China, said the company slowed the pace of opening brick-and-mortar stores because it noticed the significant rise of e-commerce sales on the mainland.
HTC is going to have about 3,000 branded counters by year-end, reduced greatly from the previous goal of 4,000. The growth rate is more than 10 times that of mobile phones sold in offline outlets during the period, the report estimated. Meanwhile, it is convenient for customers to look around on the Web for various device information, and ordered products can be delivered directly to one's home, he said. Beginning in 2000, the transaction amount of US online retail business grew by 800 percent, while the country's offline retail sales increased by only 46 percent during the same period, Lan said. Mobile phones will be one of the top categories to sell online, according to Gome and Suning. Supported by e-commerce channels, mobile phone makers may have the capability to provide customers with personalized products, he said. Latecomer companies such as HTC could benefit most from the e-commerce business, as it lags behind Samsung Group and Nokia Oyj in its number of physical stores, but online outlets may help HTC narrow the distribution gap with its rivals. If you think some image violates your copyright, please contact us by e-mail and we'll remove it or add your credits to pictures in seven work days as soon as possible. To find out more about the cookies we use and how to delete them, see our privacy policy.I accept cookies from this site.
Each AppCling comes with a Swarovski crystal and can be worn on the finger like a designer ring.
It also has an agreement with Brighstar, but Tesco refused to disclose how the changes will effect its current partnerships. AppCling can also replace your hands and be used as an adjustable cellphone holder when watching videos on your cellphone. By wearing AppCling on your finger when driving, you will never forget to bring your cellphone with you when you leave the car.

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