August decisive numbers are no coincidence but rather a long term trend. While growth of 2G users have been slowing down, it has been accelerating for smartphone users since its inception.
|Total number of smart-phone users reached 27.868 million by the end of August, a stellar rise since October 2009 when the service was introduced. As a matter of fact, August marks the first month that China Unicom (NYSE:CHU) added more than 2 million news subscribers to the service in one month. China Mobile (NYSE:CHL) is still number one in 3G and 2G arenas but dynamics are strong for CHU as well.|
While 2G subscribers still outnumbering 3G subscribers by a wide margin, dynamics favor the smartphone segment. Total number of 2G subscriber approach the 160 million mark, but the speed is clearly decelerating. China Unicom (NYSE:CHU) added 315,000 new users to this segment in August, the second smallest number for any month in the past two years.