To: Gus who wrote (6734 ) 7/31/2000 8:18:23 PM From: Ruffian Respond to of 34857 Motorola, Nokia, Ericsson, Siemens top China's cellphone sector, survey says (31 July 2000) Motorola, Nokia and Ericsson remain the top-three companies in China’s cellphone market—but all of them are wary of German telecom giant Siemens, which is coming on strong. The Information Technology Market Research Institute of the Huicong International Information Co. recently carried out a survey of China’s mobile telephone market. The company found that Motorola, Nokia and Ericsson hold the top three spots, with market shares of 31.9 percent, 29.4 percent and 21.4 percent, respectively Siemens (7.3 percent), Philips (3.5 percent) and Toshiba (3.3 percent) hold spots four through six, while the remaining 3.2 percent are claimed by other name brands, the July 28 Zhonghua Gongshang Shibao (China Business Times) reported. During the first half of the year, Motorola dominated China’s cellphone market. The company introduced five new models during that period and maintained its technological lead. In addition to the T2688 model, all existing Motorola products have a wireless application protocol (WAP) capability, which is quite trendy on today’s market, the article noted. So far this year, Nokia has introduced only one model in China, the high-end N8850, which debuted in January. According to the article, some retailers say Nokia earns most of its profits in China from two older models, the N5110 and N8210. Although Nokia introduced the WAP concept with its N7110 model in April 1999, the company lost its prime opportunity to maintain its lead in the cellphone market because it could not obtain a network permit, and because the N7110’s Internet software experienced persistent problems. Ericsson and Siemens make gains After an entire year of reform in 1999, Ericsson, which teetered on the verge of becoming a telecom has-been, finally began to rebound in China’s cellphone market this year, the story said. First, Ericsson offered customers looking for the latest in cellphone designs the T28SC. It then introduced its R320S and R380S models, just when the frenzy over WAP phones hit its peak, the Zhonghua Gongshang Shibao reported. The article went on to say that the force that has made the most impact so far this year—on Motorola, Nokia and Ericsson, as well as on the media and consumers in China—is Siemens. First, the No. 4 company introduced three new cellphone models in March alone. Two of these models have WAP capability. Siemens then restructured itself in April and created its Information and Communications Mobile Group. This combined all Siemens projects related to mobile technologies, including infrastructure construction and applications concerning terminals and mobile networks. Soon after, Siemens announced it would invest US$1.5 billion to build a new mobile Internet system in Asia in the next few years. The company also recently announced its partnership with nine Chinese Internet firms with the goal of improving WAP technology.