Handsets Sales to Reach 88 Million Units in China
Nov 9, 2005
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Approximately 88 million handsets will be sold in the Chinese market this year, far more than the 73 million last year, said a report released by the China Center of Information Industry Development (CCID).

The Chinese market sold 20.96 million handsets in the third quarter with a rise of nearly 16 percentage points year-on-year. Sales in the period reached 31.8 billion yuan (approx. U.S. $4 billion) with a year-on-year rise of 14.2 percent, hitting a record high in the past 3 years, the report said.

CCID predicted that the fourth quarter season will sell 23.2 million handsets, with sales reaching 34.3 billion yuan (approx. $4.2 billion). Since China eased its control over mobile phone manufacturing licenses, 13 new companies have entered the industry this year and many of them are strongly competitive enterprises in the IT and home appliances sector.

However, the new comers did not have outstanding performances. The CR4 index used to show the degree of market concentration kept rising in the past three quarters to 48.7 percent. The top four mobile phone manufacturers make nearly half of the handsets sold in the market, the report said. Nokia continues to hold the largest share in the market, followed by Motorola and Samsung. Home brand Bird remains fourth in the market, showed the report.

Though most of the new enterers are home brands, they did not make any breakthrough in the domestic market but engaged in OEM business aiming at exports. The market share of home brands dropped to 41.3 percent in the third quarter, the year's record low, the report said. A big drop in market share has become the destiny of home brands this year, predicted CCID. (Xinhuanet)

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