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Shift looming for handset vendor rankings in China

Declining handset sales, increasing control over white-box models and the kick-off of 3G services may result in a shift of vendor rankings in China's handset market in 2009, according to industry watchers in Taiwan.

Handset sales in China have been slow since June this year, with sales volume dropping 3.5% sequentially to 12.69 million units in October, the observers quoted data released by CCID Consulting as indicating.

Nokia and Samsung Electronics, currently the number-one and number-two vendors with a 38.9% and 19.7% share, respectively, in the China handset market in October, are expected to be able to maintain their leading market positions in the coming year, the observers said.

Motorola, the third ranked vendors with a 7.5% share in October, is expected to face keen competition for the ranking from China-based vendor Beijing Tianyu Communication Equipment, which ranked fourth with a 6.3% share in October, the CCID data indicated.

Eighth place vendor LG Electronics, which took up a relatively lower 2% share in October, plans to more than double the number of its sales outlets in China to 13,000 in 2009 in order to boost its market share, the sources pointed out.

However, the combined market share held by the second-tier vendors out of the top-10 rankings may see a pick-up in 2009 due to tighter government control on white-box handsets in China, the sources said.

The combined share held by the non-top-10 second-tier handset vendors in China fell to 12.2% in October, down from 14.9% in September, the CCID data indicated.

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