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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Tassi who wrote (74687)	1/15/2002 10:08:35 AM
From: Tassi	Respond to of 122087

The Nas 100 tested the 1600 and bounced back// China To Make 34% Of World's Mobile Phones By '05 -Report -------------------------------------------------------------------------------- 05:15 ET China To Make 34% Of World's Mobile Phones By '05 -Report 15 Jan 05:15 BEIJING -(Dow Jones)- China will become the world's dominant producer of mobile phones by 2005 as local companies take market share from the global giants, according to a recent report by Beijing-based consultants MFC Insight. The report predicts that by 2005, China-based manufacturers will be producing 233 million mobile phone handsets per year, or 34% of the projected global market. That is up from the annual output of 54.3 million phones in 2000, which accounted for 12% of the world market in that year. Much of that will come from the China operations of global phone companies Nokia Corp. (NOK), Telefon AB LM Ericsson (ERICY) and Motorola Inc. (MOT). Those companies are eager to serve the Chinese market, now the world's largest with more than 140 million mobile phone users. However, the report cautions that the Chinese government, eager to support local producers, will aid domestic companies in taking away market share from their foreign competitors. "The emergence of local production champions along with the government's ambition for Chinese companies to dominate the mobile industry, need to be seen as a wake-up call," MFC Insight Director Peter Lovelock said in a statement. The report points to a 1998 government plan to boost local phone makers' share of the domestic market to 10%-15% by the end of 2001. "By the end of the year, domestic market share was at least 15% - right on target," report author Tara Tranguch said in a statement. Yet the government's policies could backfire on local companies, the report said, as it's encouraging increased production even as mobile handset prices are falling. That could lead to a situation similar to the television set industry, where Chinese producers face thin profit margins and intense price competition despite having a major share of the world market. -By Andrew Batson, Dow Jones Newswires; 8610 6588-5848; andrew.batson@dowjones.com (This story was originally published by Dow Jones Newswires) Copyright (c) 2002 Dow Jones & Company, Inc. All Rights Reserved