Many manufacturers expected to fold
Only half of China's 37 mobile phone makers will still be in business in a year's time according to the head of a Shanghai-based Siemens mobile phone venture, reported South China Morning Post.
Peter Borger said that overproduction and falling prices would cause a massive shakeout in the industry similar to what happened in the television industry three to four years ago. He noted that his company had reduced production in the past few months to avoid adding volume to an overheated market.