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Mobile phone sales up 40% in China

According to the deputy chief of China Mobile Communications Association, sales of mobile phones in the country increased by 40 percent year-over-year to 120 million units in 2006. Xie Linzhen predicts the figure will continue to rise to a staggering 150 million units shipped in 2007.

China produced 450 million mobile phones last year, and exported nearly 350 million of them. Nokia and Motorola control the majority of the market, according to the Chinese government, but local manufacturers contributed about 50 million units last year.

Xie added global mobile phone sales climbed 25 percent last year with total shipments reaching one billion units. Worldwide sales are expected to grow 20 percent this year, said Xie.

He said the rapid increase in mobile phone sales was a result of a booming world economy which is allowing people to upgrade to a newer mobile phone more often. Last year the number of mobile users in China reached 461 million, up 68 million from 2005.

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