- In the first quarter of 2004, Chinese mobile phone shipment volume totaled approximately 65.2 million units, registering a 64.2% year-on-year rise. Shipment performance was driven by a substantial increase in Motorola shipments, and record shipment volume of low-frequency PAS (Personal Access Phone System) handsets, also known as Xiaolingtong .
PAS handset shipment share neared 15% in the first quarter of 2004. Southern China, where PAS handset production is concentrated, and Tianjin, the major production base for Motorola, saw shipment share rise from 28.8% and 14.5% in the fourth quarter of 2004 to 32.1% and 16.7%, respectively. While still outpaced by Nokia, Motorola gradually closed the gap with Nokia in shipment volume. ZTE, which suffered a significant drop in GSM (Global System for Mobile Communications) and CDMA (Code Division Multiple Access) shipment volume in the fourth quarter of 2003, was propelled into the ranks of the top-ten makers due to its robust PAS shipment performance in the first quarter of 2004.
In the second quarter of 2004, with the continued sales momentum of PAS handsets and the strong retail demand traditionally evident during May 1st vacation, the Chinese mobile phone industry is expected to grow over 40% year on year, reaching a record 66 million units.