Last week, the two biggest mobile phone manufacturers in the world, Nokia and Motorola, just announced their Q1′ 05 financial report. Both of them have beaten analysts’ prediction saying that their net sales might go down because of very tight competition in the mobile phones industry. I was actually very surprise too when they announced their net sales jumped 17% and 14% for Nokia and Motorola respectively.

Looking at the net sales only might not reflect the actual condition, but if we look at 10% profit for Nokia for example, it seems they are really in a very good condition. Why do I was very surprise? As I mentioned, the competition is very difficult nowadays, especially after China is entering mobile phones industry, especially in the low-end market. They want to get some “cheese” in this industry as well. As we all know that Chinese has an advantage in entering low-end market because they have cheap labors cost.

After seeing double growth from Nokia and Motorola, I am very interested seeing how the mobile phones market will look like in the next few years. Will Nokia still lead the mobile phones industry? Will Chinese get some more “cheese” from the low-end market? Will other companies, like Samsung, Sony Ericsson, LG, etc. have opportunities to grow? Meanwhile, the future of Siemens division of mobile phones is still uncertain until today. They might sell or close their money-losing division.

I won’t give my prediction about mobile phones industry because I am not so sure (and I guess most analysts too, as we have seen that their prediction to Nokia and Motorola report was not really correct). But one thing for sure, the entertainment will merge with mobile phones industry. We will see music, gaming, television and radio will become very common in our mobile phones… :)