A survey titled, "China Sourcing Report: Mobile Phones" by Global Sources states that Chinese mobile phone suppliers are upgrading to meet demands for products featuring more functionality and better visual appeal.
China suppliers are placing increased emphasis on innovation in order to have competitive advantage.
Livia Yip, publisher of the report, said, "China remains the world’s largest production center for mobile phones, accounting for half of global supply. Encouraged by 21% export growth in the first half of 2010, suppliers anticipate whole-year overseas shipments reaching 550 million to 600 million handsets"
TMCNet.com reported Yip as saying, "To broaden their market reach and achieve better margins, China export manufacturers are shifting away from low-end models to advanced designs. Upscale models now produced in China feature 3G, dual-SIM GSM, multimedia capability, GPS, Bluetooth, Wi-Fi, megapixel cameras, A/V recording, larger storage capacity, TVs and touchscreens."