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China market: Slow 3G handsets sales push vendors to focus again on 2G models

Sales of 3G handsets in the China market have been slower than expected recently, pushing some handset vendors to reinforce sales in the 2G segment in order to maintain their market share, according to industry sources in Taiwan.

Shipments of 3G handsets in China reached 242,000 units in the second quarter of 2009, accounting for only 0.73% of 33.07 million handsets sold during the April-June period, according to data compiled by China-based market research firm Analysys International.

Among the 3G handsets sold in China in the second quarter, CDMA EV-DO models accounted for 131,000 units (54%), followed by TD-SCDMA models at 64,000 units (26%), and WCDMA handsets at 47,000 units (19%), Analysys said.

Korea vendors as well as domestic brand vendors in China, who are offering handsets on multiple platforms, apparently have benefited from the slow expansion of China's 3G handset market, commented industry sources in Taiwan.

Samsung Electronics, LG Electronics (LGE), ZTE and Huawei Technologies have dominated in the CDMA EV-DO segment, whereas China's domestic vendors have prevailed in the TD-SCDMA market. However, other vendors, including Nokia and Sony Ericsson, share the smallest piece of the WCDMA pie, the sources commended.

Although Dopod and Inventec Appliances have both entered the 3G handset segment in China, the two vendors have still focused on marketing 2G models, noted the sources.

Other Taiwan-based vendors such as Acer, Asustek Computer and Gigabyte Communications are currently pushing sales of 3G models and 2G smartphones in the China market, the sources added.

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