China to churn out 600m mobile phones this year

China's mobile phone output will top 500 million to 600 million sets this year, taking up a share of 50% on the global market, an official with the National Development and Reform Commission, quoted by a Xinhua news report, said.

The Xinhua news report quoted Xu Qin, director of NDRC's High- Tech Industry Department, as saying that China's mobile phone production has expanded rapidly in size, forming a new point of economic growth.

Data shows that China is not only a big mobile phone producer, but also a big mobile phone user, the official said.

The rapid growth of the mobile phone production capacity accompanies the large scale expansion of mobile phone users.

Xu predicted that the country's mobile phone users will exceed 540 million this year, swelling 20% over 2006. .

In the first eight months of this year, China produced 348 million mobile phones, surging 28%.

Aside from the increase of new mobile phone users, the mobile phone replacement has also created a market.

According to forecast made by the Information Research Institute of the Ministry of Information, 20% of Chinese mobile phone users need to replace mobile phone annually.