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China Telecom Faces Limited Supply of RMB 1K 3G Smartphones

Netease Tech, 10/13/11

In an interview with Netease Tech yesterday, Ma Daojie, director of China Telecom's (NYSE: CHA; 0728.HK) handset management center and general manager of its procurement subsidiary Tianyi Telecom Terminals, revealed that supply for the operator's large-screen RMB 1,000 3G smartphones had remained tight, which had in turn kept sales of the devices from growing faster. During Q4 2011, China Telecom will work with multiple phone manufacturers to release more phones in this category.

China Telecom predicts that if supply can be maintained, sales of Chinese telecom equipment and terminal manufacturer Huawei's C8650 will break the 2 mln unit mark by late October, and possibly the 5 mln unit mark by the end of the year. Yang Xiaozhong, China GM of Huawei terminal subsidiary Huawei Device, said the company would increase production and shipping of the phone to satisfy operator and consumer demand.

Keywords: sales volume Ma Daojie China Telecom handset procurement wireless Huawei 3G Tianyi 0728.HK CHA Huawei Device Yang Xiaozhong smartphone Huawei C8650

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