Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Caxton Rhodes who wrote (30196)	5/17/1999 5:58:00 PM
From: quidditch	Respond to of 152472

I wonder if the "domestic content" Chinese handsets will be able to withstand the same test? Chinese gov't promoting local manuf' to take share away from Ericsson. <China to Give its Mobile Phone Makers a $120 Million Boost By Elaine Chan at Bloomberg News 17 May 1999 China plans to give local mobile phone makers 1 billion yuan ($120 million) to help them make inroads in a market dominated by foreign firms such as Ericsson AB of Sweden and Nokia Oyje of Finland. China's four mobile phone makers, including Eastern Communications in the city of Hangzhou and China Kejian Co. in Shenzhen, control only 10% of the market, even though their phones sell for a third less than those made by foreign rivals. Jia Hua, an official at Xiamen Overseas Chinese Electronics Co., the first Chinese firm to make mobile phones, confirmed the government investment plans. Foreign companies such as Nokia welcomed the competition, saying it is securing its market in China by "investments in local production and research and development," a spokesman said. At stake is a market whose subscribers are expected to surge 80% this year to 45 million. The new government investment in local firms could boost their market share as high as 50 percent within three years, the South China Morning Post reported. Taking advantage of rising demand, Konka Group Co., Changhong Electrical Appliances Co., and TCL Communications Equipment, China's biggest television makers, recently announced plans to make mobile phones this year. Jia didn't say which local companies would receive government support. The Post said Beijing will provide the funds to 18 unidentified domestic companies. Xiamen Overseas plans to boost sales of its "Xiahua" phones to 200,000 units this year from about 50,000 units in 1998, Jia said. The phones, which sell for about 1,800 yuan each, are also exported to the Middle East and Eastern Europe. Jia denied the investment plan was aimed at shutting out competition. Instead, the government hopes "to develop the domestic mobile phone making industry, which until now has been a blank," he said. Copyright 1999, Bloomberg L.P. All Rights Reserved. © EMAP Media 1999