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Samsung GSM handsets in China

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Samsung Electronics, the world's third-largest mobile handset maker, has won a foothold to sell its GSM handsets in China, casting a threat to dominant foreign players Motorola and Nokia.

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Industry sources said Samsung recently secured Beijing's approval to directly sell GSM handsets in China rather than relying on import agents. The move allows it to compete head-to-head with Motorola and Nokia in China's high-end mobile handset sector.

A Samsung spokesman declined to comment.

The news came as Motorola, the world's second-largest handset maker, said total sales in China last year were expected to hit US$5.7 billion.

'The year-on-year growth in China has been spectacular,' said Motorola president Mike Zafirovski, expecting 'healthy double digit growth' in annual purchases by China consumers.

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Mr Zafirovski said mainland sales registered 15 per cent growth last year because the company exported more cellphones and semiconductor chips. Motorola is due to announce its full-year results on January 22.

Mr Zafirovski said Motorola was poised for a turnaround after battling an industry meltdown in the past two years, helped by a pick-up in the handset market.

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