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Chinese mobile phone exports take a dip
Posted: 02-Jul-2005 [Source: R&M]

[Demand weakening and competition increasing in Chinese mobile phone market reports Research & Markets.]

Dublin, Ireland -- Demand in the Chinese mobile phone market has been weakening, and competition has grown more intense. Inventory levels are high, and the market is flooded with fake-branded handsets. As a result, in the first quarter of 2005 the Chinese mobile phone industry shipped only 60.3 million handsets, representing a year-on-year decline of 6.5%, and a sequential decline of 10%.

Factors that have affected the performance of the Chinese mobile phone industry include the reallocation of production capacity by Nokia and Motorola, more aggressive development of the Chinese GSM/GPRS handset market by Samsung, LG and NEC, the reduction in ODM/OEM contracts, and the increased demand for PAS handsets. It is anticipated that the awarding of new mobile operator licenses will have an even more dramatic effect on the industry's structure

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