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Electronic Information Industry Sales Grew 20.2% By Lanbo Jiang

  in Business | Published 2010-02-20 01:51:12 | 150 Reads | Unrated

Summary

According to Ministry of Economic System Reform and Economic Operation latest statistics, first half of 2005, China's electronic information industry, the finished product sales revenue 128377 trillion yuan, an increase of 20

Full Content

According to Ministry of Economic System Reform and Economic Operation latest statistics, first half of 2005, China's electronic information industry, the finished product sales revenue 1.28377 trillion yuan, an increase of 20.2%. However, experienced rapid development in 2004, after the first half of this year, industry wide growth has slowed down the economy.

Statistics show that the completion of the first half of the whole industry sales grew 20.2 percent over the same period last year dropped 24.1 percentage points; the whole industrial added value the industry 271.99 billi
on yuan, an increase of 21.1% over the same period last year 25 . 4 percentage points; to achieve profits of 42.11 billion yuan, down 4.1%, showed a negative growth situation.

For the industrial development of the first half of the Ministry of Information Industry official says, "more normal." In his view, China's electronic information industry over the past few years by ultra high speed development, return to the track of normal development, thus, "growth will slow."

As for the overall growth rate of the reasons for the slowdown, market analysis organizations include the World Bank funded Qu Xiaodong, general manager of the view that the industrial development from the two aspects of analysis of internal and external factors. In the external environment, efforts to control the large investment, "This is bound to have an impact on the IT industry to reduce the expenditure on the purchase in this regard." In the meantime, the first half of IT market, the lack of hot spots to attract consumers to a certain extent there have been insufficient consumption.

In the industrial development on the one hand, due to concern of the 3G, digital TV and other major projects and standards for the delay yet, restricts the release of the energy industry. On the other hand, China's IT industry has begun to bid farewell to high growth stage and matured. Enterprises engaged in massive technological and industrial transformation, "This is bound to cause the growth rate down."

To home audio visual industry as an example, from February to June, sales of the industry wide decline in the proportion of monthly growth rate also dropped, mainly because, first, with the upcoming digital television standards and the trend of flat panel TVs the whole industry in the promotion and nurturing stage, consumers are mostly Chibidaigou; Second, most of the enterprises to adapt to market development, and timely adjustment of product structure, business investment is still in the pre state, the product did not form scale.

Despite the significant decline in growth rate during the first half, profits or even negative growth situation, but Qu Xiaodong domestic IT industry is very optimistic about the prospects.

3G, digital TV and other major projects have been included in the national focus of planning among the relevant departments. With 3G, for example, the relevant head of Ministry of Information Industry made it clear that all aspects of the current situation, the development of 3G in China's basic conditions. Ministry of Information Industry will be this year, with the relevant departments to make policy recommendations in due course.

With 3G, digital TV and other major projects to be implemented, the next one or two years, the domestic IT industry will usher in a few trillions of dollars big market, the entire electronics and information industry is expected to substantially increase the growth rate.

For the new round of growth will be much, Qu Xiao Dong believes that the development of China's electronic information industry will become more mature, and thus the growth will be "far higher than the existing rate of more than 20%, but no more than the previous 40% the above ultra high speed. "

Optimistic about the domestic IT market to domestic companies can bring in huge profits then? The answer is not optimistic.

Competition makes the profit margin to decline further. Statistics show, 1 to June industry wide sales margin of 3.3% over the same period last year dropped by 0.8 percentage points. Home audio visual product sales in which profit margins of only 1.9%, computer sales margin of 2.1%.

At the same time, the whole industry this year, a serious decline in economic returns, to the total profit in June fell 4.1 percentage points; the whole industry a total of loss making enterprises 4405, year on year increase of 15.3 percent, the total loss of 13.9 billion year on year increase of 71 . 2%.

The domestic IT market challenges facing enterprises will be more intense. On the one hand, with the development of international and domestic customers are beginning to focus on the global market allocation of resources, domestic enterprises to compete with international companies on the same stage. On the other hand, China's IT industry a huge market opportunity is attracting a large number of multinational companies, "the Chinese market has become the focus of their business," multinational corporations are the depth of digging the Chinese market. Statistics show that foreign funded enterprises in the first half of the entire industry, the proportion of sales revenue from the beginning of the year 77.1 percent up to 79%. "Domestic companies will face more patent infringement, technical barriers to the challenge," Analysis of the industry.

"Domestic enterprises should grasp the 3C convergence in particular, 3G and Internet application areas of new opportunities." Expert suggestions the case. In this context, the domestic enterprises to break through and establish their own advantages is essential.

21pbn

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