Mobile phone sales in China are forecast to reach 150 million units in 2007, up 23.1 percent year-on-year, CCID Consulting said on Wednesday.

The sales volume, however, was expected to drop 0.3 percent to 166.1 billion yuan (22.66 billion US dollars) because more low-end mobile phones were sold during the period.

The average price of a mobile in China dropped from 1,408 yuan in 2006 to 1,142 yuan this year. In addition, more than 20 percent of mobiles sold were less than 500 yuan, the CCID said.

Li Xuefang, a CCID consultant, cited increased demand for tailored phones by mobile operators and rising low-end mobile users in rural areas as the main reasons for the price drop.

Promotions by domestic manufacturers of mid- and low-end mobiles also brought down the general selling price, she added.

In the third quarter of 2007, Chinese brand mobiles accounted for 33.4 percent market share, up from 31.1 percent in the second quarter.

CCID also predicted mobile sales, driven by rising low-end mobile users and the forthcoming launch of the third generation mobile networks, would exceed 200 million units in 2009.

Beijing-based CCID Consulting was the first domestic consulting firm listed in the Growth Enterprise Market of the Hong Kong Stock Exchange. It was directly affiliated to the China Center for Information Industry Development (CCID Group).

(Xinhua News Agency December 27, 2007)