Telecom Equipment News
- Guangdong News
Date: 13-Apr-2007 Sources: (Shenzhen Daily)
SHENZHEN mobile phone makers have called on the government to help them expand overseas in the face of shrinking profits caused by increasingly severe competition in the domestic market.
'The production of mobile phones had greatly exceeded demand and Shenzhen enterprises should expand business in overseas markets such as in Africa, Southeast Asia countries at any cost,'said Zhang Limin, manager of Shenzhen Xiongtao Electronics Co., at a meeting with Shenzhen Municipal Science and Information Bureau officials Thursday.
Shenzhen has more than 500 companies manufacturing mobile phones and phone products, but most of them are small and need government help in finding out about investment environment and regulations in foreign markets, according to Zhang, who has recently opened a factory in Vietnam to make mobile phone batteries.
'When we have a new model, we don't know if we can have it patented because we don't know the progress of other companies,'said Lin Xiong of a mobile phone design company.
Shenzhen-based Huawei Technologies, China's largest telecom equipment maker, earned 12 billion yuan (US$1.55 billion) last year through mobile phone products, 80 percent of which were sold in overseas markets.
But Huawei faces challenges when tapping the American market because it is not familiar with technical standards, legal requirements and intellectual property rights issues in that country.
Shenzhen ships 22 million mobile phones a year, accounting for 50 percent of nation's total.
To seek opportunities in international markets, the science bureau will arrange for local companies to participate in International Mobile Industry Exhibition and Forum 2007 to be staged in Tianjin on May 18.
The fair, billed as the largest mobile phone industry fair in China, will have 660 booths. Leading companies like China Mobile, China Unicom, Motorola, Samsung, Intel, ZTE Corp., Ningbo Bird, Levono, DTmobile, Symbian, Qualcomm, Freescale and Infineon are expected to attend.
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