VTech Holdings will continue its price war on cordless phones in a bid to defend its market share in the US, chairman and chief executive Allan Wong Chi-yun said. The retail price of the cordless phone has fallen from US$70 last December to $50 this month. But the market anticipates it will soon fall to $40. Mr Wong said VTech controlled half of the market share of cordless phones in the US. 'The price is not determined by the market,' he said. 'Instead, it is our own strategy to maintain our competitiveness.' Despite a fall in the retail price, VTech has been able to maintain the gross profit margin. 'We can control the production cost at well below the retail price.' He said increased production capacity in the mainland had achieved economies of scales and the cost on raw materials had dropped due to declining Asian currencies.