June 6, 2005
China is ruled by low and lower-end phones
Telecoms Korea reports that ultra-low cost handsets will sweep the Chinese market, according to BDA China, a Chinese research firm dedicated to telecom business.
"There are a several reasons why cheap phones are increasing in China:
-- The government is fueling competition by increasing licenses to manufacturing handsets.
-- Leading handset makers such as Motorola and Nokia are trying to expand their market by introducing low cost phones, thereby increasing competition.
-- Handset makers increasingly release ultra-low cost phones to enhance their price competitiveness.
The cheap phones are not only the case of GSM but also with CDMA.
BDA China projected that fierce competition over low cost phones will drive up the number of mobile subscribers."
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