Worst affected seems to be the CDMA segment, which has seen shipments slip 7.8 per cent to 18.9 million units - that is down 3.4 per cent year-on-year. GSM shipments, however, were not that badly hit and shipments of GSM (Global System for Mobile communications) hovered at 155.1 million units during the third quarter, up 8.4 per cent sequentially and 6.4 per cent year-on-year.

The Chinese mobile phone industry, which witnessed double-digit expansion as recently as 2006, has gone on to record a very unimpressive sales of 175.2 million units in the third quarter of 2008. This represents a 6.2 per cent sequential growth and 4.3 per cent year-on-year growth.

Apart from China, Taiwanese handset sales too have been hit hard with the country witnessing as much as a 26 per cent fall in sales year-on-year. The situation is expected to continue for quite some time, according to analysts. In terms of market share, Nokia continues to be the leader in Taiwan, followed by Sony, Samsung, Motorola and LG. Even in this scenario, Taiwan's HTC continues to be in the pink of health mainly owing to good reaction for the Android. The company plans to venture out big time into China where Nokia and Motorola dominate the smartphone arena - with as much as 90 per cent market share.

For 2009, analysts at BNP Paribas have forecast that Chinese handset makers will ship almost 200 million phones to emerging markets by the end of the year. Vodafone is relying on China for as much as 35 per cent of its 2009 handsets -- accounting for a total share of 18 per cent.

India's Spice Mobile, too, seems to have its eyes set on China for sourcing its handsets.

With 2008 ending on a bleak note, the Chinese handset industry hopes to return to normalcy as soon as possible.

Source: Techtree.com