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The Chinese Mobile Phone Industry, 1H 2004 and Beyond
Market Intelligence & Consulting Institute (MIC) [a division of Institute for Information Industry (III)], Sep 2004, Pages: 34
Near the end of June 2004, the Chinese government promulgated Document No. 412, terminating the necessity for mobile phone manufacturers to apply for production licenses. The good news did not make companies waiting for a production license shout for joy. There remain hidden obstacles such as product inspection and the need to apply for network access licenses. Price competition is intense, inventory levels are high in the channels, and banks have been refusing financing to mobile phone channel players; PAS network infrastructure remains insufficient as well. As a result, the Chinese mobile phone industry's growth rate failed to meet expectations in the second quarter of 2004. As the industry moves the peak season in the second half, these issues will continue to impact shipment volume.
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