overly pessimistic outlook for SP reaction may mark the industry to the bottom, from the law of economic development, SP industry will rise again.
wireless service providers ("SP") the winter has continued for a long time, since last year, the government issued to rectify the policy, SP have been adjusted to struggle. In May 22nd, the first SP air network released 2007 first quarter earnings, the situation is not optimistic: first quarter revenue fell 28%, a decline of 15%, net profit fell 82%, a decline of 57%.
and the sluggish performance of the corresponding stock price, the air network has been half a year from $9 per share fell below $5, the same year, Linktone’s share price fell 40%, Hurray shares fell 30%, pessimism has spread in the SP industry. Allegedly, the country engaged in this industry, 600 thousand people, more than half are under one and suffering, even the industry elite turn to open a restaurant.
however, in my opinion, the overly pessimistic reactions may be a marker of SP reached the bottom of the industry. Throughout the history of economic development, the SP industry is not new to bear. In fact, if two or three years ago, the entire SP industry scenery together, we can see the SP industry only from a bubble peak in fall.
bubble will eventually break, some of the hype is overdone, performance can not keep up, some of the changes in the business environment dictates. However, if the bubble completely deny and even hate not. On the one hand, it is always accompanied with the emerging industry, on the other hand, the bubble burst of emerging industries mature major role: industry boom, uncompetitive enterprises will also be relaxed because of environmental profit, which is actually a resource allocation efficiency of the damage.
of course, after the bursting of the bubble can rise again, depends entirely on the needs of emerging industries still exist, SP industry is also the case. In fact, people can easily see that the future SP will also play an important role in people’s life, such as mobile phone TV, mobile phone, mobile phone mail stocks and so on, with these needs there, follow the economic law, we can assert that the SP industry will rise again.
, mobile operators, SP and CP (content providers) together constitute the upper and lower reaches of the whole industry chain. The three, mobile operators in a monopoly position, CP provides operational content for the SP, and SP plays a bridge role.
more than the structure of the SP negative. In this case, the value of the industry chain focused on both ends, that is, where the operator is located at the end of the channel and the content of the CP. SP seems not essential, the other two ends can be combined. It can be said that the SP had the same unusual winter, not because of the chain are recession, but due to the structural instability before under the framework of SP does not grasp the core value brought by it.