Fierce competition forces Taiwan mobile phone group to cease production in world's biggest market
A company that used to be one of the top five mobile phone brands in China has ceased production, the latest casualty of ferocious competition and price-cutting in the world's biggest market, according to industry sources.
Last week Shanghai Dbtel, a unit of the Dbtel Group of Taiwan, sent dismissal notices to about 700 staff, leaving it with 1,600 employees, down from 2,300 in November and a peak of more than 10,000 in 2003 when it had mainland sales of five million handsets.
A company public relations official refused to comment other than to say he was being laid off yesterday. Other company employees were unavailable for comment.
The sources said the company had decided to withdraw from the mainland market and end its distribution and after-sales services but may continue to serve overseas markets, such as Russia, Thailand and Latin America.
The company is in severe financial difficulties. It had to face the anger of suppliers who had not been paid for three months and turned up in Shanghai recently to demand their money.
Fearful of the future and the lack of funding, many of its key staff have already left the company.