Four domestic phone makers eye a collective breakthrough
31/10/2005 16:17
Jane Chen / Shanghai Daily news
Eager to gain an
upper hand in the competitive mobile phone market, four domestic phone makers
will cooperate in the hope of making a collective breakthrough.
On Saturday,
Skyworth Mobile Communications Technology Co Ltd, Guohong Digital Communication
Co Ltd, Shenzhen Malata Mobile Communication Co Ltd and Daxian Group announced
the establishment of a strategic partnership to produce phones under a sole
brand, the National Business Daily (NBD) reported.
At the press conference,
Le Yesheng, president of Skyworth Mobile, said that "only by cooperating can we
have a big enough market share to survive the competition from overseas rivals,"
when explaining the rationale behind the union.
The four phone makers will
restructure their resources in order to manufacture under a unified brand and
share the costs of after-sales services, he disclosed.
The president of
Guohong Mobile, Wan Minjian, agreed with Le's view, adding that the four
companies, all relative newcomers to the phone-making industry, will benefit
more from cooperation than rivalry during their forays in the market.
They
will consolidate resources in research and development, manufacturing,
purchasing and sales, he said, and will soon unify outsourcing.
The four
companies voiced their intention to "regenerate the strength and standing of
domestic phones" at the press conference. They are expected to ink supplementary
agreements on details of the union on November 18.
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