Huawei Aims to Double Mobile Phone Production

China's Huawei is aiming to double its handset production as it seeks to overtake local rival, ZTE - currently China's largest single mobile phone manufacturer. Sources told the South China Morning Post that Huawei has set itself a target of 50 million units - up from the 20 million reached last year.

For its part, ZTE - which sold some 31 million phones last year - also aims to increase its production to a similar 50 million units.

Huawei currently outsources its handset manufacturing to Thailand based Cal-Comp Electronics and Singapore headquartered Flextronics. The company is understood to be looking at Foxconn as a possible third partner. Foxconn currently manufactures the Apple iPhone and was recently reported to have won a substantial order for the long awaited 3G iPhone.

Foxconn is controlled by Taiwan based Hon Hai Precision - with whom Huawei already has a relationship for network infrastructure manufacturing.

"In order to strengthen relations with Hon Hai, Huawei could migrate the majority of its mobile-telephone orders to Foxconn," an industry source told the newspaper, adding that the tie-up would take effect in the near future.

Huawei has existing agreements to provide operator branded mobile phones to Vodafone and Telia - as well as USB 3G modems for several operators, including Hutchison 3G.

On the web: South China Morning Post

Posted to the site on 5th May 2008

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