The pipe is now full and it's time to focus on upping the game to compete in the real market. This was hinted at when Moto took over TTPCom. This makes it official. The big question now is ... When will they move from GSM to 3G?
China's Official: Handset supply overtakes demand
2006-09-05 08:11:44
Three more firms have approval to make and sell mobile phones in China but industry officials warned the domestic handset market is already in a supply-over-demand situation.
Hedy Holding Co, a Guangzhou-based personal computer maker, Shenzhen-based Gaoxinqi Co and Shenzhen Unitone Electronics Co Ltd have been approved to sell own-brand mobile phones, the National Development and Reform Commission said on its Website recently.
Including the three newcomers, the number of approved handset manufacturers is now 55, close to the NDRC's previous target of 60.
"The new players in the industry will stoke the competition as output has overcome demand in China," said Li Xuefang, an analyst at Beijing-based CCID Consulting, a research firm under the Ministry of Information Industry.
Output of mobile phones for sale domestically was 90 million last year compared with a demand of between 60 million and 70 million in China, Li said.
In the first half, the total output of mobile phones, including those exported, in China jumped 64 percent year on year to 210 million. For the whole year, it is expected to hit 400 million units, including exports, more than 50 percent of the global output, MII said.
China implemented the new handset industry entry policy last April after abolishing a six-year strict and vague license system. Since then, PC, consumer electronic and telecom firms, like Huawei Technologies and BenQ have been approved by NDRC to enter the industry.
Source:Shanghai Daily
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