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PC giant launches handset campaign
( 2002-06-27 10:26 ) (1 )

Legend Group Ltd, China's biggest computer vendor, launched its handset products on Wednesday in Beijing and vowed to establish its position in the mobile telecom market in five years.

"I hope we can create the same success in the handset market as we did in the personal computer market," said Yang Yuanqing, president and chief executive officer of Legend, China's biggest computer maker since 1999.

Yang made the remarks after his Xiamen-based mobile phone subsidiary Legend XOCECO Mobile Communication Company released four models of handsets with Legend's brand.

The lead model -- Legend G808 -- features the 2.5 generation mobile communication system general packet radio service (GPRS), dual screens and ring downloads and will be priced at 3,580 yuan (US$430).

"We will target the middle level of customers, and the prices of all our products will be in the range of 2,000 yuan to 3,000 yuan (US$240 to US$260)," said Dai Yitong, executive vice-president of Legend XOCECO Mobile Communication Company. It is a joint venture between Legend and Xiamen Overseas Chinese Electronic Co Ltd (XOCECO).

Liu Zhijun, company president, said that when domestic makers grasp the core technology of handset manufacturing in the next three years, their low-cost advantage in manufacturing will help them dominate the China market in the same way they are now doing in computer manufacturing.

The company has set up two research and development centres: the Shanghai centre in charge of high-end products and the Xiamen centre in charge of mid-level handsets.

Liu also said Legend was considering producing code division multiple access (CDMA) handsets to support China's second largest mobile telecom carrier, China Unicom, whose development has been troubled by a shortage of mobile phones.

He denied any knowledge of a Hong Kong report on Monday that Legend would import 300,000 handsets from South Korean maker Sewon Telecom with US$45 million.

"I don't think we have any supply problem," he said.

The president said Legend's Xiamen factory has a capacity to produce 1 million phones a year and can handle the present market demand.

He said his company has no plans to expand the current capacity, though he did not rule out the possibility of further increasing stakes in Xiamen's Legend XOECO.

He said Legend will seek original equipment manufacturers for its products when the demand is rising.

Last Wednesday, Legend raised its stakes in Legend XOCECO from 60 per cent to 80.8 per cent with 61.5 million yuan (US$7.4 million), while XOCECO controls the rest.

According to statistics from the CCID Consulting Co Ltd under the Ministry of Information Industry, 16 million handsets were sold in China in the first four months of 2002. Motorola led with 26.7 per cent market share.