China-based Gome to purchase five million handsets in 2008, say sources

Daniel Shen, Taipei; Steve Shen, DIGITIMES [Wednesday 14 November 2007]

China-based Gome Electrical Appliances Holding has signed contracts to purchase a total of five million handsets from international leading vendors as well as from handset makers in China, according to industry sources.

The purchase contracts are part of Gome's plan to expand its share in the handset market in China, said the sources, noting that Gome aims to boost its share from the current 6.7% to 10% in 2008 and to further expand the market share to 15% within three years.

Under the contracts, Gome, in 2008, will buy as many as 3.3 million handsets from international leading handset vendors, including 1.1 million units from Nokia, 1.0 million units from Samsung Electronics, 700,000 units from Motorola and 500,000 units from Sony Ericsson, the sources indicated.

Gome will also purchase another 1.7 million handsets from China-based handset makers next year, including 500,000 units from TCL (including Alcatel-branded models), 400,000 units each from Lenovo and Amoi Electronics and 200,000 units each from Haier and Chinabird (formerly Ningbo Bird), the sources added.

Gome's strategy to purchase handsets directly from the vendors could affect efforts by Taiwan-based distributor Synnex Technology International to expand its handset sales in China, according to the sources.