[September 08, 2009] China Mobile Likely to Quit Netbook Business, Sources Say Tweet BEIJING, Sep 08, 2009 (SinoCast Daily Business Beat via COMTEX) -- Sensing a chill market response to the much-hyped TD-SCDMA network-powered netbooks, China Mobile Limited (SEHK: 0941 and NYSE: CHL) is likely to pull out of the netbook business, a segment once taken as a major profit generator in the 3G era. China Mobile is scheduled to hold an internal conference this week, putting the netbook suspension-related issue on the table, said sources familiar with the matter on September 7. The Beijjing-headquartered company is trying to adjust its development strategy for the TD-SCDMA-based netbook segment, said one source, noting that some of the planned netbook promotion campaigns across the country have been put off since this August. The telecom operator will stop providing huge subsidy for netbook makers in the future, disclosed some netbook markers in the country previously. "Part of the netbook promotional activities that were set to kick off in June have been postponed till the fourth quarter of the year," said an executive for a mobile phone company in the country, "as the segment did little to help the carrier lift its TD-SCDMA network subscriber number - the company saw little return after giving high subsidy to netbook makers." China Mobile, which managed to sell 50,000 to 100,000 G3 netbooks across the country at the netbook debut month, saw the figure on the decline thereafter, in spite of the fact that as much as CNY 2,100 was subsidized to netbook makers for each product on sale, said another source. The worse-than-expected sales, according to a personal computer maker that made customized netbooks for China Mobile, resulted from an imperfect TD-SCDMA network in the country. A three-day test over the TD-based netbook conducted in Guangzhou at the end of June showed that the modules and client were not running smoothly as forecasted, pointed out an executive for the PC company. "The telecom operator asked its partners to turn in products shortly after placing orders, giving little time for netbook makers to recheck the products," said the executive. In a recent press conference, China Mobile said that it would concentrate on TD-SCDMA mobile phones running its self-developed open mobile system (OMS) in the second half of the year. Such announcement was made several months after the company unveiled a plan to market a wide range of TD-SCDMA terminals like dual-model mobile phones, TD-SCDMA data cards, TD-enabled netbooks, laptops, as well as TD-based home gateways in the year. (USD 1 = CNY 6.83) Source: www.nbd.com.cn (September 08, 2009) [ Back To TMCnet.com's Homepage ]