Breaking into First-tier Territory: Current Status of Emerging Mobile Phone Brands in China

Following the introduction by the Chinese government in March 2005 of a new approval system for mobile phone production and sale, by the end of September 2007, over 50 new entrants had been awarded licenses. Added to the 30 existing vendors, there were over 80 mobile phone manufacturers authorized to sell mobile phones within China in September 2007. The approval system was abolished by the end of 2007, making it even easier for new companies to move into the mobile phone business. Most of the new entrants are Chinese companies with a background in central office equipment manufacturing, ODM, mobile phone design or distribution, or TV or PC manufacturing. Companies such as Huawei, Tianyu, and Yulong have made effective use of their existing sources of competitive advantage to achieve impressive sales performance.