Motorola, the world leading HP manufacturer, is stepping up its pace into the Chinese market when China's telecom industry is entering the era of rapid development. Last week Motorola (China) revealed its "two plus three plus three" scheme for development.
Last year, Motorola experienced its first financial loss and largest scale of staff reduction. Chen Yongzheng, newly appointed director of the company, noted that Motorola is capable of resuming its former glory and Chinese market is a crucial one for it.
"Two" means that China will be built as world-level manufacture and research base, Chen explained. The first "three" refers to three new business fields: digital telecom system, semiconductor and broad-band business and the second "three" the three goals: Motorola to generate an annual revenue of US$10 billion by 2006, inject an accumulated investment of US$10 billion by 2006 and a procurement of accessory parts of US$10 billion from China in the coming five years.
As a sharp contrast to the world telecom market, Chinese telecom sector witnessed a growth rate of over 20 percent last year. The number of China's HP users is expected to hit 250 million by 2005. Moreover, China has succeeded in entering into the WTO and bid for hosting 2008 Olympics. Facing the great changes in China, Motorola is ready to embrace challenges in the future with its new scheme.
Regarding GPRS, CDMAIX and the new competitive pattern of Chinese telecom sector, Motorola considers that in an era of mobile Internet, the telecom and Internet sectors will eventually come to integrate into one of "Telecom and Internet Environment". The successful performer in cooperation will stand out the final winner instead of a single trade in the future.
( June 12, 2002)
