Jane Chen / Shanghai Daily news

Taiwan-based electronic manufacturer BenQ Corp is aiming to capture 10 percent of China's mainland mobile phone market in three years, its Vice-President and General Manager of Networking & Communications Business Group, Irwin Chen, announced last week.
Quoted in today's www.sina.com, Chen said BenQ had been preparing to reach this target since 2004.  Its sales target for the present year is 1 million BenQ handsets, or 2 percent of China's market, which is the world's biggest telecom market.
BenQ received a mobile phone manufacturing license last Friday from China's telecom authority, but it is not going to raise this year's sales target, according to its Chairman and CEO K.Y.Lee.
"The 1 million phone target is still challenging enough," he noted.
Before obtaining a phone manufacturing license, BenQ had been tapping the China's mainland market by a joint venture with a China phone maker, Chinese Electronics Corporation Telecom (CECT), selling phones under the brand of CECT.
In contrast with BenQ's optimism about the China's phone market, market analysts remain cautious about its prospects here, citing the already stiff competition in the overcrowded market.
The State Development and Reform Commission has warned that China's mobile phone industry is in oversupply and that investment risks are increasing.
Data from the Ministry of Information Technology, the telecom authority, indicated the country would produce 260 million phones this year, while total capacity may reach 500 million phones.
The ministry issued four new phone-making licenses last Friday, increasing the number of phone makers in China to 46.