Bloomberg
Lenovo Overtakes Ningbo Bird as China's Biggest Handset Maker 2006-09-12 05:45 (New York)
By Janet Ong
Sept. 12 (Bloomberg) -- Lenovo Group Ltd., the world's third-biggest personal-computer maker, overtook Ningbo Bird Co. as China's biggest mobile-phone maker in the three months ended June 30, market researcher IDC said.
Lenovo sold 1.93 million handsets in the second quarter for a 6.5 percent share of the Chinese market, up from 4.6 percent a year earlier. IDC said in an e-mailed statement today. The Chinese company, based in Raleigh, North Carolina, is the nation's fourth-largest mobile-phone maker, including foreign brands.
Overseas phone makers such as Finland's Nokia Oyj and Motorola Inc. are trying to win market share in China as the nation prepares to introduce high-speed wireless licenses, which may spur demand in the world's largest cell-phone market by users. China has 431.8 million subscribers as at end July.
Nokia, the world's largest maker of mobile phone, leads with a 34.5 percent share in the second quarter, followed by Motorola Inc. with 22.8 percent and Samsung Electronics Co., which has 9.4 percent, IDC said.
Ningbo Bird shipped 1.63 million mobiles in the second quarter for a 5.5 percent market share, down from 8.1 percent a year earlier. The company, based in the eastern port city of Ningbo, was the largest domestic brand in the first quarter, with a 5.8 percent market share, followed by Lenovo's 5.7 percent.
Handset Plant
Lenovo's mobile unit, Lenovo Mobile Communication Technology Ltd., on Sept. 10 opened a handset plant in the southern city of Xiamen. The factory can produce 15 million cell phones in the first year and has maximum production capacity of 30 million mobiles.
The move is part of Lenovo's target to win a 10 percent share of the China market this year, Liu Zhijun, general manager at the mobile unit, said in the statement.
In the fiscal first quarter ended June 30, revenue from handset sales rose 65 percent from a year earlier to \$174 million. Mobile-phone sales made up five percent of total revenue, up from 4.2 percent a year earlier.
Lenovo also makes servers, printers and digital products which made up 1.6 percent of its fiscal first-quarter revenue.
--Editor: S. James
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