China suppliers of mobile phones shifting to upscale models with more functionality and fancier look

HONG KONG, Nov. 8, 2010 /PRNewswire-Asia/ -- China suppliers of mobile phones are moving upmarket to meet demand for products with more functionality and greater visual appeal. This is according to Global Sources' (Nasdaq: GSOL) China Sourcing Report: Mobile Phones (http://www.chinasourcingreports.com/mobilephones ).

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The Report, which covers smart, TV, touchscreen, 3G and feature phones and handsets based on wireless communication technologies such as GSM, shows China suppliers are placing increased emphasis on innovation. Features-rich models are driving R&D, as suppliers strive to gain a competitive advantage.

Publisher of the Report, Livia Yip, said: "China remains the world's largest production center for mobile phones, accounting for half of global supply. Encouraged by 21 percent export growth in the first half of 2010, suppliers anticipate whole-year overseas shipments reaching 550 million to 600 million handsets.

"To broaden their market reach and achieve better margins, China export manufacturers are shifting away from low-end models to advanced designs. Upscale models now produced in China feature 3G, dual-SIM GSM, multimedia capability, GPS, Bluetooth, Wi-Fi, megapixel cameras, A/V recording, larger storage capacity, TVs and touchscreens."

Besides integrating more functions, suppliers are also innovating their housing designs for differentiation in this highly competitive industry.

Prices fall even as product features expand

According to the Report, many suppliers have reduced product prices in the past three months, despite adding value with feature enhancements. In fact, nearly half of companies see price competition as their biggest challenge right now.

Yip said: "Even though suppliers face the possibility of higher production expenses due to ongoing labor and IC shortages, prices are unlikely to rise significantly in the coming months, as suppliers fear losing orders amid intense competition."

Of suppliers surveyed for the Report, 61% recently decreased prices. About one-fifth of respondents dropped prices by more than 15 percent, while 43 percent of companies said their reductions were less than 5%.

    Other trends revealed by China Sourcing Report: Mobile Phones include:

    -- 57% of surveyed suppliers plan to improve operating efficiency to
       strengthen export capability
    -- Reduction of production costs and product defects are also key
       strategies
    -- 44% of suppliers are focusing R&D on more affordable solutions
    -- Suppliers see design piracy, the yuan/US dollar exchange, raw material
       costs and stricter overseas standards as challenges

Supplier profiles, price forecasts and the latest mobile phones for export

The 109-page China Sourcing Report: Mobile Phones provides detailed profiles of 26 suppliers with verified manufacturing and export credentials, plus contact details of 25 more suppliers. It also includes a Product Gallery featuring 115 of the most popular export models, with key specifications and full-color pictures.

The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources websites, face-to-face events, trade magazines and research reports

China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online (http://www.globalsources.com ), China Sourcing Fairs (http://www.chinasourcingfair.com ), Private Sourcing Events (http://www.PrivateSourcingEvents.com ) and Global Sources monthly magazines (http://www.globalsources.com/SITE/MAGAZINES.HTM ).

For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://www.corporate.globalsources.com .

China Sourcing Report: Mobile Phones is available for purchase at http://www.chinasourcingreports.com/mobilephones .

Free information about China suppliers of mobile phones can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/Mobile-Phones.htm .

About Global Sources

Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business uses English-language media to facilitate trade from Greater China to the world. The other business segment utilizes Chinese-language media to enable companies to sell to, and within Greater China.

The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 967,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 240 countries.

The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on over 4.7 million products and more than 262,000 suppliers annually through 14 online marketplaces, 13 monthly print and 18 digital magazines, over 80 sourcing research reports and 20 specialized trade shows which run 57 times a year across 9 cities.

Suppliers receive more than 192 million sales leads annually from buyers through Global Sources Online (http://www.globalsources.com ) alone.

Global Sources has been facilitating global trade for 40 years. Global Sources' network covers more than 60 cities worldwide. In mainland China, Global Sources has about 2,700 team members in more than 40 locations, and a community of over 2 million registered online users and magazine readers for its Chinese-language media.

    Global Sources Press Contact in Asia:
     Camellia So
     Tel:   +852-2555-5021
     Email: [email protected]

    Global Sources Press Contact in U.S.:
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    Global Sources Investor Contact in Asia:
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     Tel:   +852-2555-4747
     Email: [email protected]

    Global Sources Investor Contact in U.S.:
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     Lippert/Heilshorn & Associates, Inc.
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SOURCE Global Sources