At present, feature phone and quasi-smart phone have the rapidest development. So-called quasi-smart phone not only has audio and video functions, but also has the functions of processing Office documents, reading PDF documents and playing games. Different from smart phone, it doesn't have open OS.

Compared with smart phones, its price advantage is evident, and it has mobile phone manufacturers' support. Moible phone enterprises, especially domestic mobile phone enterprises not only reduce development cycle, but also reduce cost, which is the main force of shipment. Therefore, application processor in China's mobile phone chip market will face the threats from high performance baseband chips and high  performance coprocessors in the future.

Domestic chip makers need to be strengthened
As for brand structure, mobile phone platform chip manufacturers have high positions such as TI, Qualcomm, Infineon, NXP and MTK. Besides, storage manufacturers such as Samsung, Intel and Spansion, and manufacturers with abundant product lines such as ST and RFMD also have important positions in the market.

As for development ability, 3G chip manufacturers and application processor manufacturers have strong development abilities. Next few years are the rapid development period of 3G market. Because of its advantage in 3G field, Qualcomm becomes the enterprise with best development ability in domestic mobile phone chip application market.

China's domestic mobile phone chip enterprises' shares are low. As China's mobile phone chip design has had a late start, its products focus on mobile phone multimedia chip, such as MP3 decoder chip, image processor chip and chord chip, and its downstream customers are domestic mobile phone production enterprises, but it is difficult to enter supply systems of international mobile phone manufacturers such as Nokia and Motorola.

However, with the increase of domestic mobile phones' output and the development of multimedia mobile phones and 3G businesses, domestic mobile phone chip manufacturers have great potentials over the next few years.

3G, multimedia application and smart phones are not only impetus of mobile phone chip market, but also the development opportunities for domestic chip manufacturers.

In future years, China's mobile phone chip market will follow China's mobile phone output and enter steady growth. China's mobile phone chip market will break through 100 billion Yuan in 2009, and it is forecasted that the market will reach 146.13 billion Yuan in 2012. 2G/2.5G era mobile phones consider voice as major part, core chip is baseband.

Miltimedia and business application will be more and more applied in 3G era. Therefore, with the enlargement of 3G mobile phones' output, multimedia application chip, storage chip and wireless connection chip market grow rapidly.