25th March, 2009
China: Techfaith Wireless Communication Technology Limited and Qiao Xing Mobile Communication, announced that they will co-launch high-end 3G mobile phones in China.
Under the terms of the agreement, TechFaith will provide total WCDMA and EV-DO solutions to Qiao Xing Mobile for the development of high-end 3G handsets that will be marketed under Qiao Xing Mobile's VEVA brand.
The handsets are expected to launch in China in the second quarter of 2009. Mr. Defu Dong, Chairman and Chief Executive Officer of TechFaith (Pictured Left), said, "Developing high-end WCDMA and EV-DO phones is an important step in entering the high-end handset market in China. Even in this tough economic period, consumers in China have very strong purchasing power and a large appetite for luxury goods.
Qiao Xing Mobile has successfully launched several high-end luxury GSM phones under its VEVA brand and we believe that the VEVA brand will provide us with a solid platform to penetrate the high-end 3G market in China. We also believe that pursuing a high-end product strategy will help maintain or even increase the profit margins of both companies during this period of economic slowdown."
Mr. Wu Zhi Yang, Chairman of Qiao Xing Mobile, commented, "The PRC government has recently authorized three major telecom operators in China to operate 3G business and the 3G mobile phone market in China is expected to grow significantly.
To capture this growth opportunity, we will make full use of our VEVA brand advantage in the market and will cooperate with TechFaith to develop high-end WCDMA and EV-DO handsets under our VEVA brand. We believe that the introduction of these high-end 3G handsets will help to further raise the profile of our VEVA brand as well as enhance our profitability and growth."
