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China news of interest to holders of Voxson

  1. 6,931 Posts.
    This story could be of interest to those that hold VXS. They are selling "engines" for moblie phones into Taiwan for th China market, if I am not mistaken.

    Thursday, June 6, 2002

    Mainland handset makers emerge to challenge mobile big guns


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    Multinational mobile-phone handset makers will soon face challenges from emerging mainland manufacturers eyeing expansion into the United States market, according to Wavecom, a French wireless standards developer.
    Wavecom managing director Jean-Charles Andreani said Chinese manufacturers were already competing head-on with foreign handset makers in the domestic market and "certainly have the vision to enter the US market".

    Mr Andreani believed emerging handset firms would follow in the steps of white goods manufacturers such as Haier Group - China's largest maker of household appliances - in expanding overseas to compete with world-renowned brands.

    "Some of our clients already have plans to enter into the US market," he said, adding that technology components of some domestic handset manufacturers had reached a level comparable with major global players.

    Some Chinese handset manufacturers had adopted a business model similar to that of personal computer makers, outsourcing their core wireless technology to wireless solution providers and enablers, allowing them to enjoy short product development cycles and higher production yields.

    This business model enabled emerging handset makers to enjoy lower production costs than giant handset makers such as Nokia, which builds everything itself.

    Mr Andreani said China's handset makers were expanding fast, having raised their share of the domestic market from 3 per cent in 1999 to 13 per cent last year.

    "For example, TCL [Communication Equipment] took only three years to become China's No 1 local brand."

    TCL recently ranked third in China, behind Motorola and Nokia, with about 10 per cent market share.

    Motorola, Nokia, Ericsson and Siemens are the world's largest handset makers. The four account for about 80 per cent of China's market.

    Twenty per cent is shared among 30 domestic handset makers and other foreign brands.

    Mr Andreani expected Chinese handset manufacturers would continue to expand domestically and increase their presence globally, adding that the Ministry of Information Industry had set out an ambitious target to see them capture 80 per cent of market share. He expected local handset makers would move towards global markets as they grew larger.

    Wavecom is a major supplier of standard wireless modules to handset makers. A wireless module is a compact device that brings together the hardware, software and other technology needed to enable wireless communications over different networks.

    The company generates about 80 per cent of its revenue from China.

    Its handsets are either sold directly to mainland handset makers or indirectly to Korean makers, which then sell most of their products to the China market.

    Its major clients include TCL Communication Equipment, China Kejian and Soutec.



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