The Sony Ericsson, once giving an impression that it only produces high-end cell phones, has turned to compete in the low-end market following Motorola and Nokia. The three giants' turn has caused concerns for the China-made cell phones that have already been trapped in difficult situation.

Statistics show market share of China brand cell phone has dropped five percent to 42 percent by April 2005. By contrast the foreign cell phone's market share has climbed to 58 percent.

The foreign cell phone giants' squeeze will make the days even "harder" for China-made cell phones.

As "dominators" in the high-end market, Motorola and Sony Ericsson have reaped generous profits in the market where they have a large market share. Motorola's V3, for instance, has created a miracle at the cell phone market. It not only brings about huge profits for Motorola but also consolidates its position on the market.

China-made cell phones have a large consumer group at low-end market, especially in the medium and small cities. This once brought glorious success to the cell phone makers. But this year only very few Chinese makers, such as Xiaxin, Lenovo maintain well growth momentum. Other Chinese cell phone makers including TCL and the Bird have been struggling in losses and declining performance.

By People's Daily Online