EMS competition over mobile phone customers to tighten

According to the latest report from Reportlinker named China Mobile Phone (Assembly) Industry Report, 2009H1, China exported about 248 million mobile phones in 1H2008, which valued US$17.4 billion. In 2H2008, approximately 285 million mobile phones were exported with the value of US$21.1 billion. Therefore, China exported 533 million mobile phones valued US$38.5 billion totally in 2008, with the average export price of US$72. During the first half of 2009, China exported 237 million mobile phones valued US$16.1 billion, and imported 11.74 million ones; besides, the output of mobile phone was 305 million in China. BYD, Samsung, ZTE and LG gained high growth rate, particularly Samsung with the highest rate. Among them, the shipment of Samsung's Huizhou Plant was almost three times over that in 2008. ZTE obtained large shares in the new telecoms procurement. Since its increasing global shipment, LG increased the output in China, but the majority of increment was entrusted to Taiwan Arima. Benefiting from Nokia's modest preferential policies, the shipment of BYD rose greatly. In contrast, the growth rate of Foxconn, Motorola, Huawei and Compal declined sharply. The shipment of Foxconn decreased because BYD competed with it for orders and its major clients Motorola and Nokia has less demand. Huawei tried to sell mobile phone business in the second half of 2008, but failed to do it at the end of 2008, so Huawei’s mobile phone business stalled in the second half of 2008 and run unfavorably in the first half of 2009. The remaining manufacturers had little changes.