China VoIP Products Industry

An Expert's View about IT and Telecommunications in China

Posted on: 6 Apr 2010

China’s overseas shipments of VoIP products are rising steadily as the technology is increasingly being adopted worldwide, articularly in the commercial and enterprise segments.


Leveraging their price advantage over foreign counterparts, makers in the country have secured a strong position in the low-end and mid range sectors. But they are still struggling to establisha niche in an industry that is dominated by a few large international companies.


The global financial crunch, meanwhile, is both a challenge and an opportunity for the VoIP industry. Suppliers expect export sales to continue their gradual upward trend as more enterprise and personal users choose VoIP instead of conventional telephony in pursuit of cost reductions amid the economic downturn.


But even though VoIP deploymentis spreading worldwide and traffic increasing, China suppliers face stiff competition, especially from makers of other less expensive devices, including computer microphones.


The lack of standards in the use of VoIP phones, particularly from the operator side, also poses a challenge to suppliers, as does the variety of protocols used.


Under efforts to boost sales, suppliers are keeping an eye on the market as VoIP technology continues to advance toward the wireless mobile communication platform.


Many are also banking on thedevelopments in China’s telecom restructuring program, hoping that some provisions will benefit the line. And in an increasingly convergent and broadband environment, makers are optimistic that growth is in store for the VoIP industry.


The following are some of the key trends observed in China’s VoIP product industry:

• Exports in the line are expected to grow in the next 12 months but at a moderate 10 percent rate.

• Makers are providing aftersales service even as they continue to offer prices relatively lower than foreign counterparts. They will maintain focus on the low-end and midrange sectors.

• Suppliers will direct product development on function integration, wireless connectivity and enhanced audio transmission. Improved hardware and software compatibility will likewise be emphasized.

• Anticipating increased demand from Europe, North America and the Asia-Pacific region, suppliers intend to raise capital expenditure between 20 and 50 percent in coming months.



The above is extracted from the Executive Summary of China Sourcing Report: VoIP Products


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Posted: 06 April 2010

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