Shenzhen-based Skyworth is planning to invest one billion yuan or about US$120 million in mobile phone operations.

It comes after a number of domestic handset makers either reported huge deficits over the first half this year or quit the mobile phone business.

But president of the Skyworth Mobile Le Yesheng believes Skyworth makes a right approach.

"The market is a huge one, it hasn't shrank, the industry hasn't slipped. We have established brands and are doing well on product development. It is a good opportunity for us to enter the market."

China's mobile phone market witnessed robust demand in the first half this year, with total sales reaching 45 million sets, a growth of about 15 per cent year-on-year.

It is learned that Skyworth will present 18 mobile phone models by the end of this month, including audio-video multimedia, PDA for business, and intelligent phones.

Just like Skyworth, another two leading household electronic appliance makers Hisense and Aux are busy deploying their new mobile phone products.

Liu Lei is a telecommunication analyst with the Analasys International. She says home appliance makers are buying looking for other businesses to make up for their thinner profit from highly-competitive household appliance market.

"Mobile phone is no long a sole communication product, the entertainment devices are getting popular. Mobile phones are changing into a consumer electronic product. And the industries of communication, computer and consumer electronics are increasingly converging."

But she also has doubts about their competitive edge in the market, despite their established sales channel and brand recognition.

Nokia, Motorola and Samsung, the top three best sellers on China's mobile phone market, made up of nearly 40 percent market share in the first half this year, while Bird, the domestic brand following these three, occupied less than 10 per cent.

(CRI.com August 26, 2005)