Bird flies high in China

02 Sep 2003 08:57

A domestic handset manufacturer with global ambitions has claimed the top spot in China's mobile phone market

A China communication products maker, Ningbo Bird, has just unseated Motorola to become the number one handset supplier in China, reported official news agency Xinhua.

The Zhejiang province-based company garnered a slim lead with 15 percent of the market share in the first half of this year, while Motorola followed in second place with 14.2 per cent, according to figures from the country's Ministry of Information Industry.

However, given the small lead, observers say that the situation could reverse in the coming months as Motorola launches new models.

Bird -- as it is known outside China -- attributed its success to a better understanding of local preferences, cheaper prices and a broader network of distribution channels, said the report.

The China firm was established in October, 1992, and specialises in electronic communication products, such as mobile phones, handheld computers, mobile phone accessories and pagers. The middle and low-end segments of the market are the firm's primary targets.

Like Bird, China companies have made deep inroads into the market. In the first half of the year, domestic brands gained 55.3 percent of the local market, growing by 16.2 percent from last year, according to financial news Web site FinanceAsia.

According to a study by Portelligent, a US-based market research firm specialising in consumer electronics, Chinese handset makers have what it takes to compete both in domestic and export markets around the world.

This conclusion stemmed from an in-depth analysis of 17 handsets from 11 Chinese firms including Amoisonic, Ningbo Bird, Capitel, Eastcom, Haier, Kejian, Konka and Legend.

The firm said 2G (second generation) and 2.5G phones from the mainland performed well on most counts and are comparable to those produced by major multinationals. In particular, a pen-like GSM (Global System for Mobile Communications) phone -- from Haier -- that features a built-in laser pointer and voice recorder, stood out as a novel design concept, it added.

Portelligent's study also found that Chinese cellphone makers tend to "mix and match" components rather than using a complete chipset and design from a single supplier.

Recently, Bird announced its venture into India with the launch its products in the country. Mobile operators there believe that Bird's wide range of low-cost handsets will do as well in India and they have in China.

Mobile penetration in India remains low, leaving much room for growth. According to Cellular Operators Association of India, subscribers numbers rose to 16.3 million in July. Sari Baldaus, president of Nokia Networks said in a report from news agency AFX that she expected 100 million mobile phone users in the country within four years.

Story URL: http://news.zdnet.co.uk/hardware/0,1000000091,39116061,00.htm