China Mobile Adds Alarm to Slow Growth Story　中国移动慢发展的故事上再加新警报

By newsdoug on April 21, 2011

China Mobile’s (HKEx; 941; NYSE: CHL) first quarter results are out, and the picture certainly isn’t pretty for the country’s dominant mobile company (English results; Chinese results) The top and bottom line both show the usual single-digit slow growth that has become the norm for this company in the last 3 years as it builds off its dominant position without any new products to excite consumers. But what’s slightly alarming is the big drop in monthly revenue per user, which tumbled to 12 percent by the end of March versus the end of 2010. That’s a huge drop for such a short period, and clear evidence that the company is struggling to keep up with aggressive tactics by rivals Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHT) to win share with vastly superior 3G products. If the numbers keep eroding like this, China Mobile’s growth could very well flatten completely or even slip into negative territory.

Bottom line: China Mobile’s already-anemic growth is in danger of slipping into negative territory as it tries unsuccessfully to fend off competition from Unicom and China Telecom.

中国移动<0941.HK> <CHL.N>首季度财报出炉，情况看上去不是很妙。营收和利润数字说明，其过去三年的个位数缓慢增长速度已成常态。虽然中国移动没有推出任何能取悦消费者的新产品，却依然占领市场老大地位，但稍令人警惕的是，其平均每月每户收入营收大幅降低，截至今年3月的数字与2010年年底相比下降12%。在如此短的时间内，这样的降幅还是很大的，而且这也清楚地说明，中国移动正苦苦应对中国联通<0762.HK> <CHU.N>和中国电信<0728.HK> <CHA.N>对3G产品市场份额的争夺。要是这一数字继续呈下降趋势，中国移动的增长速度可能更会大幅萎缩，甚至跌成亏损状态。

一句话：如果中国移动没能抵御住来自中国联通和中国电信的竞争，其岌岌可危的增长速度将面临变成亏损的危险。

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