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billion in 2001 (Wang, 2003). Table 2 shows Motorola alone had invested $3.4 billion in China
through 2002 (ChinaNex, 2004).

Table 2. Primary Foreign Handset Producers in China

	Motorola	Nokia	Ericsson	Siemens	Samsung
Date of entry	1987	1985	1985	1982 ~	1992
First handset manufactured in China_____	1992	Middle 1990s	1992	1993	--
Subsidiaries in China	WO (1); JV (8); controlled (1); local offices (26); R&D facilities (18); employees (13,000)	JV (8); local offices (about 50); global R&D centers (2); employees (4700)	WO (4); JV (10); local offices (26); employees (4500)	JV(more than 40); local offices (28); employee (21,000)	Manufacturing facilities (11); investment company (1); local offices (3); R&D center (1); after- sale service center (1); employees (11,000)
Total investment	$3.4 billion (till 2002); R&D, $0.3 billion_______________	More than $2.9 billion	More than 600 million	More than $660 million______	More than $2.6 billion
Revenue (2003)_________	$6 billion	$2.5 billion	$1.8 billion	$1 billion	$6.4 million (sales in 2002)________________
Mobile phones production	--	--	--	12.5 million (2003)	--
Mobile phones sold in China (2003)	about 12 million	about 10 million	--	2-3 million	--
Market share (1999)_________	39.4%	32.3%	6.44%	5.95%	--
Market share (2002)_________	25.76%	18.17%	2.09%	4.66%	--

Notes: WO: wholly owned; JV: joint venture; --: not available.

Source: Individual company’s official website and ChinaNex website at:

http://www.chinanex.com/company/index.htm

These foreign companies enjoyed a long period of success due to strong demand in China.
Four primary joint venture firms, Motorola, Ericsson, Nokia, and Siemens, dominated China’s
mobile handset market before 2002. The aggregate market share of these four companies was
over 85% in 1999. China is also the single largest market for many large multinational
companies. China accounts for 30% of Motorola’s handset sales, making Motorola increasingly
dependent on China for growth. Ericsson has established a primary base for production for

China's Mobile Handsets FINAL DRAFT 2006.sph ERSA2006 Greece

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