Although the global decline in mobile handset shipments is expected to be more than 10 percent, the latest report from market researcher iSuppli Corp. projects steady growth for handsets in China during 2009. According to iSuppli, growth in mobile handsets in China will increase 7.7 percent for 2009 over 2008, with the domestic handset market expected to reach 239.1 million units.

According to Kevin Wang, Senior Manager of China Research for iSuppli, "China's three wireless operators are attracting new subscribers by reducing service fees. This will greatly contribute to demand from first-time buyers. "He added that, "beyond that, the government's broadened subsidy policy for consumer electronics purchases will stimulate demand in rural areas."