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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 181.65

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3:45 PM EST

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To: Maurice Winn who wrote (22863)	2/11/1999 3:40:00 PM
From: Ruffian	of 152472

Mot & Ericy May Have Problems In China> Chinese attack phone giants Electronics Times Chinese manufacturer Xiahua Mobile Telecom Equipment has started production of the country's first locally developed mobile phone handset. Guangdong-based Xiahua is the first domestic company to try to compete head-on with overseas giants Nokia, Ericsson and [ Motorola ] , whose wholly-owned and joint venture plants dominate the market, assembling handsets from imported components. The Huaxia I handset was developed in co-operation with the Guangzhou Communications Research Institute. It runs on the GSM platform using Xiahua's proprietary software and hardware. It is small and light (139g), and displays information in Chinese and four other languages. A company statement says the handset is also energy-efficient and can run for more than 100hr on a fully charged battery. Its price, at $218, and quality are both competitive with foreign models, according to Guo Zeli, general manager. He estimates sales this year of 300,000 handsets - a tiny fraction of the 15 million which are expected to be sold in China this year. But the Chinese government has adopted a policy of pushing local telecoms equipment manufacturers this year, and others are expected to introduce handsets in the near future.

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