Here is something unexpected. Lower-end foreign handsets are on the rise in China, and are actually driving prices down! According to a new report from CCID Consulting some 71.478 million domestic-made handsets were sold in China in the first half of 2007. Due to continuous price drops and the introduction of low-end products revenues have actually fallen year to year, while over all profits in the mobile handset market have also fallen.
What is interesting to note is that Nokia, Motorola and Samsung accounted for 51.4 percent of the over all mobile phone market, which is up 8.9 percent year-to-year. Nokia and Motorola both saw a noticeable rise in their market shares over the first half of 2006, and the sum of their market shares rose almost 10 percent. Both companies introduced low-end products. Some would say turn-about is fair play indeed.