Chinese handset vendors go abroad

By Linda Sui (China Daily)
Updated: 2006-12-04 09:20


Based on its annual report, BDA estimates ZTE's total overseas sales were approximately 2.5 million units in 2005, all of which were branded exports.

ZTE has good relationships with operators in Brazil, Peru and Venezuela, and its main region of exports to date is Latin America. Handset sales (mainly CDMA phones) are usually bundled with equipment sales.

In addition, ZTE has made progress with 3G products, supplying customized WCDMA and EV-DO handsets and data cards to Hutchison, TELUS and other overseas operators.

BDA estimates Huawei's export volume reached 3 million units in 2005, of which 3G products made up over 16 per cent.

Regionally speaking, the company works closely with operators in India, Pakistan, Algeria, Brazil and Venezuela. In developed countries and regions, Huawei has provided customized WCDMA phones to Vodafone, Singtel and PCCW.

Amoi has set its 2006 export target at 0.6 million units, anticipating 3G products to account for over half of total sales. Thus far, it has provided WCDMA phones to Vodafone, Hutchison and Orange, as well as Taiwanese operators. Compared to the four vendors listed above, Amoi lags behind in terms of volume but has a relatively strong R&D capability in 3G and high-end products.

BDA believes Amoi will take advantage of its higher ASPs, which will help balance the company's financial burden caused by high R&D costs.

Overseas export outlook

Other manufacturers and new entrants are expanding to overseas markets as well, including Lenovo, Haier, Hisense, Konka and Gionee.

BDA forecasts local vendors' total exports will match domestic sales volumes this year, topping 32 million units.


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