EL SEGUNDO, Calif.-While China continues to export a growing number of cell phones, new research also shows that the country’s domestic market is set to explode.
According to electronics research firm iSuppli Corp., China exported 45.5 million mobile phones during the third quarter, a 26.1-percent increase from the 36.1 million units exported during the second quarter.
The number of manufacturers in China also is on the rise, with 15 new companies receiving government approval to make and sell handsets in China. About 40 companies previously held licenses to sell phones in the country.
However, iSuppli said some of the newly licensed manufacturers likely will fail, while others are not considered serious players.
Unlike most countries, China licenses handset manufacturers.
Meanwhile, iSuppli said wireless will contribute considerably to China’s economic growth in the near future, especially since third-generation licenses are expected to be issued in 2006.
ISuppli predicts domestic Chinese shipments of 3G mobile phones will ramp up to 2.29 million units in 2006, compared with zero today. By 2009, iSuppli projects that figure will rise to 35.96 million units.
