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Chinese Mobile Phone System Design Houses Development Strategies in 2008
Market Intelligence Center, April 2008, Pages: 28


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After experiencing a period of rapid growth in 2003 -2005, Chinas mobile phone design houses have had to cope with a more challenging business environment since 2006. Important customers such as NEC and Alcatel have withdrawn from the Chinese mobile phone market, while at the same time the share of the Chinese domestic market held by the Chinese mobile phone vendors -which have in the past been the Chinese mobile phone design firms main customers -has been shrinking. Mobile phone design houses have adopted a variety of different strategies in response to these challenges. Some have switched to an ODM business model, or reoriented their operations to focus on international markets. This report will examine the operations of leading Chinese mobile phone design houses Techfaith, STG and Longcheer, along with the outlook for their future development.



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