It's said that after Ericsson announced on January 26 the "external contracting" strategy to be implemented for its handset business, the external world showed great concern about the future of the joint factory of Ericsson in China, misunderstanding it as that the Company would withdraw from the mobile phone market.

The vice-president stressed that the joint factory of Ericsson in China is one of its four largest supply centers in the world and holds an important status in its global supply. Ericsson will continue to expand its manufacture of cell phones in China. Presently it is consulting with its Chinese partner on how to put this plan into practice to further meet the domestic market demand and enlarge export at the same time.

He also pointed out that Ericsson not only had no intention to withdraw from the global mobile phone market, but also would pool funds and resources through external contracting, focus on cell phone research, development, design and other fields of more interest, thereby enabling Ericsson to make long-term profits and maintain its leading position in this trade as well.

It's reported that currently Ericsson has a 20 percent share of the Chinese mobile phone market, holding a third placing. Moreover, it enjoys a 40 percent chare of the Chinese market in the field of GSM and other network equipment. It has planned to increase its investment in China from last year's US$2.4 billion to US$5.1 billion in the next five years.

(21dnn 02/16/2001)