Mobile phone chip market in China had fallen 6%

A study conducted by research institute CCID Consulting said mobile phone chip market in China last year had fallen as much as 6% to U.S. $ 16 billion after having had a rapid growth during recent years.

In the last year, as quoted from the site Cellular-News, the number of handheld devices manufactured in China was down 8.6% to about 750 million. The decline occurred because a number of reasons, such as a decrease in production that is now happening as a result of the financial crisis, took hit handheld device manufacturer in China.

During this time, known as China's mobile phone production base in the world. A number of large vendors such as Nokia and Motorola, already have production lines in the country. Fourth quarter is usually a critical period for the vendor. Learning from experience in previous years, in the quarter is usually the manufacturer, began implementing the latest technology for mobile phone production.

Slowing global economy and a decrease in the market mobile phone becomes the cause of lesunya chip production in the fourth quarter last year. This condition is proportionate to the upside in the market situation in 2007, where the booming mobile phone follow up the number of chip production.

Multimedia chip market, along with the memory chip is still contribute as much as 43% of the total chip market. Popularity of multimedia chip mainly driven by increased adoption multimedia features in mobile phones, such as camera and MP3 player. Multimedia chip market is also affected by electrical current from the crisis. This can be seen from the decrease in chip production in the year ago of 20% compared with production in 2007.

Meanwhile, the chip application, a year ago on the contribution of only 4.1% of the total chip market, estimated to be increased mainly due to an increase in high-end mobile phones along with the expansion of third generation technology