Motorola official: Disorderly competition may hurt China's phone market
6/10/2003 15:09
If the disorderly competition continues with China's phone
manufacturers, it will finally hurt the country's entire mobile phone industry,
a senior official with a renowned US phone maker warned.
Cited by today's
Sina.com, Brian Lu, Motorola Corporation Vice-president and General Manager of
Personal Communications Sector of Motorola China, said "China's phone makers are
desperate to gain the market share through launching fierce yet rough-and-tumble
competition, as the country's market, ranging between 50 to 70 million phones,
are too crowded for more than 600 models currently availed by 40-odd
makers.
Far above the market capacity, China's phone output has jumped to 250
million each year and result in a sharp increase in stockpile.
To cut their
stockpiles, phone makers have to slash prices. Those frequent prices wars have
led to a disorderly market.
On the other hand, many phone makers focus the
competition to sales vehicles and act to bar overseas rivals from entering
China's market.
Though this sales strategy may help increase their business,
it won't work for long, according to Lu.
He advised Chinese phone makers take
an open attitude to their rivals from abroad and sharpen their edges through
good quality products and services rather than close the market, since
competition is an all-around matter.
"International companies such as
Motorola can digest the pressure from China market through its international
business and resources, while many domestic phone makers can't do, because
they're reclusive to China's market," he added.
Jane Chen / Shanghai Daily news
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