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Philips Enables Haier to Capture Ultra Low-Cost Handset Market in China
Posted: 30-May-2006 [Source: Roayl Philips]

[China's Haier selects Philips Nexperia system to create low-cost handset for mass production in China.]

Eindhoven, Netherlands -- Royal Philips Electronics announced today that Haier, one of China's Top 3 handset manufacturing companies, has selected the Philips Ultra Low Cost (ULC) Reference Phone, featuring the Philips Nexperia cellular system solution 5128, to create a low-cost handset for mass production in China. The handset, the HG-Z1000, will be available to a potential market of 1.5 billion customers. Haier chose the Philips ULC Reference Phone to consolidate its market positioning and address the need in China for reasonably priced simple-to-use handsets that can be designed around the consumer to provide functional, optimally selected features at low cost.

The Philips ULC Reference Phone featuring the Philips Nexperia cellular system solution 5128 has been selected by Haier because of its advanced, customizable technology which enabled Haier to bring the HG-Z1000 to market in just four months. Developed in the recently opened Philips Design Center in Shanghai, the Nexperia cellular system solution 5128 features outstanding system optimization and power management capabilities, which provides the Haier HG-Z1000 with 280 hours standby time and three hours talk time.

"Mobile handset uptake in the Chinese market is at a critical stage," said Mr. Liu, marketing director, Qingdao Haier Telecom Co. Ltd. "Haier chose the Philips Reference Phone, which is behind our HG-Z1000, because of its proven ability to supply outstanding technology which aligns with our need to provide our consumers with easy-to-use handsets at an ultra low cost."

"Haier's new handset is a pure example of simplicity, designed around the needs of the consumer," said Adrian Chu, vice president, Regional Marketing & Key Accounts for Greater China, Mobile & Personal Business Unit, Philips Semiconductors. "The Philips Nexperia cellular system solution 5128 displays a maturity that is ideal for customers like Haier. Our experience in working with high-volume suppliers means we can ensure a short technology ramp-up which leads to a faster production time -- four months in the case of Haier."

"The bulk of new subscriber growth over the next five years will come from developing regions, such as China," said Scott Smyser, director and principal analyst at the market-research firm, iSuppli Corp., El Segundo, Calif. "Subscribers in developing regions require low-cost handsets, and costs can be reduced only with innovative semiconductor solutions."

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