Nokia and Motorola increase lead in China

Nokia and Motorola were responsible for half of all mobile handsets sold in China during the first six months of the year, according to local research.

The market share held by the foreign mobile vendors has increased almost nine per cent in the past year.

During the first half of 2007 the market scale "expanded continuously and the average price of mobile phones dropped steadily", reported analysts from Beijing-based CCID Consulting.

China's 1.3 billion citizens spent $11.25bn to purchase 71.5 million mobile phones in the first half of 2007.

While unit sales were up 25.5 per cent, total consumer spending on mobile phones rose only 5.5 per cent indicating that the average phone buyer is spending considerably less than one year ago.

"Foreign brands have driven up the sales efforts of low-end products and bundled mobile phones," CCID reported, as Nokia and Motorola now sell some 70 per cent of all handsets priced at $65 or below.

However, in spite of the deluge of cheaper phones, CCID's researchers pointed out that "foreign brands have continued to cultivate the high-end product market ".

Nokia now has a market share of 31 per cent in China, closely followed by Motorola with 22.5 per cent.

No other firm has more than a 10 per cent share, although South Korea's Samsung is close to double figures.

No local firm has more than five per cent, although China's ZTE holds 4.8 per cent of the market.

In spite of their comparative invisibility at home, China's leading mobile makers have had some success selling infrastructure equipment overseas.