Huawei’s strategic market sales director-general, Hu Jun-ling stated that the China cellphone market scope is approximately 450 million to 500 million units, and this year’s sales forecast is for the amount of cellphones sold in China to reach 400 million units. Therefore, the predicted market growth is fairly limited, and it will be necessary to actively develop overseas markets and enter new markets in developing countries.

Hu Jun-ling also pointed out that next year in China there will still be basic demand to switch from 3G to 4G; however, allowances for consumer mobile providers will decrease. In addition, the Chinese government will implement restructuring for business taxes, which will affect mobile providers’ profits. The Chinese government will also decrease subsidies for mobile providers. These three factors will affect consumers’ willingness to purchase cellphones.

Currently, although the sales volume for mobile phones in China has experienced rapid growth, this growth has mainly been concentrated in lower and middle range models. However, a small minority of brands have begun developing high-end cell phones.

Accordingly, Hu Jun-ling stated that as supply chains for their own components are gradually maturing, Huawei has begun developing a high-end cellphone that will cost 3,000 RMB.