Some key figures: There are 900 million active subscribers on China’s three carriers, over 350 million mobile Internet users, and over 250 million new handsets sold each year. Even at this scale, growth has not slowed down.  There continues to be eight to 10 million new subscribers being added each month, with about 50 percent of them being 3G users.

When it comes to smartphones, for tier 1 cities in China smartphone penetration is over 50 percent, which is higher than most Western markets. Nationwide, it is closer to 15 percent. Android phones and iPhones are the best sellers in China, taking market share away quickly from the market leader Nokia.

Looking ahead, the smartphones with the most potentials are Google Android phones & Apple iphones – each for very different reasons. Whilst Android is winning the price war and taking big share away from Nokia in the mid-tier and tech savvy markets, Apple is still the phone of choice for the high-end and brand/fashion conscious segments.

Regardless of whether Chinese consumers pick Android or iphones, they will all very soon be smartphone users: With carrier subsidies, even the latest models become affordable for consumers of almost all income levels.