Web Site: www.newporttechnologies.biz

Table of Contents
Evolution of Global Handset Industry
Globalization of Technology – Three phases
What is a Shan Zhai Ji Phone?
China Market handset statistics
Shan Zhai - Bandit Handset characteristics
Shan Zhai Ji examples in the grey market
Greater China Integration Stratety – “Taiwan Inside”
with Shan Zhai Ji, for competitive advantage
The rise of MediaTek MTK and their Blue Ocean
Strategy in Greater China, emerging markets
Disruptive Innovation from a Silicon Chip (SoC)
Birth from Shan Zhai Ji to global brand – it can happen!
Conclusion

Evolution of Global Handset Industry
Q: How did Shan Zhai Ji phenomenon start, why is it occurring now?
A: Greater China is the global supply chain center for outsourced of
R&D, design, assembly and manufacturing in the cell phone
industry!
History of Mobile Handsets in China
2000 2003 2005 2006 2007
Handset industry China NingBo Bird Chinese Government TianYu Lantong Chinese government
in China begins, and DBTel (Taiwan) enforced production became the first cancelled production
Motorola and became most popular certification system, 40 domestic certificate system in
Nokia occupy top local brands, initiated handset vendors obtained company to October, leading to
handset sales prosperity of the permits to produce mobile create their own- the prosperity of
positions domestic mobile handsets, any phones brand, private Shan Zhai Ji
phone market produced without these handset using handsets
permits were illegal, lend Mediatek MTK
to bubbling phenomenon chip
of market
2008 2009
Lenovo China sells their mobile phone business Major Tier #1 handset vendors sales plummet,
at a loss in January, During Beijing Olympic much concern in the industry that Shan Zhai Ji
games, Digital TV is formally broadcast leading are unstoppable and certainly difficult to fully
to hot sales of Mobile TV phones enforce. Many local handset vendors spin out
handset biz altogether, Moto, Sony-Ericsson in a
world of hurt.

Greater China integration strategy
•“Greater China” is leading in
technology for the mobile
device market.
•Taiwan - source for R&D and
finances.
• China – assembly &
distribution
•2/3rds of all cell phones
assembled in China
•Prior to 2008, 50% of all cell
phones designed in Taiwan

Globalization of Technology
Three Phases
Globalization: First Wave 1415-1914
Portugal - seeking way to obtain wealth from the Sea, controlled
Straits of Hormez on Persian Gulf, made Goa, India its
possession
Columbus was also looking for a route to India, instead found
US.
Portuguese the first to claim Formosa, but settled in Macao in
1500s.
Dutch, French, English and Spanish came to Asia (USA & Japan
also involved) in search of wealth, natural resources for the next
400 years
Dutch East India Company, Jardine Mathison, Hutchison
Whompoa, colonization of India, Opium War in China, British
licensed Hong Kong

Globalization of Technology
Three Phases
• Globalization: Second Wave 1947-2000
– America led the second wave with Western Democracy,
philosophy.
– Objective was to rebuild a new generation in Asia/Europe after
WWII
– Constructed trading system, discarded protectionism,
mercantilism of the past, eventually created GATT, then WTO,
opened up markets
– Marshell plan for Europe, Dodge plan for Japan, focus to set
production in motion, created an export orient system from
new factories
– Golden age for the USA 1950-1973 in terms of growth
– Gold standard set, in 1971 exchange of Gold halted in favor of
US $

Globalization of Technology
Three Phases
– Dollar system set up, all other currencies would float or be
adjusted or fixed against the US Dollar
– U.S. long term competitiveness started to slide in the 1980s,
trade deficit with Japan, then others, eventually China as U.S.
economy moved from manufacturing to service industry.
– The Internet helped in 1990s build the U.S. back into an
innovation society, but then the bubble burst in 2001
• Globalization: Third Wave
– In the third wave, China has re-emerging after 600 years!
– The rise of the microcomputer industry is leading the way, then
broadband communications, technology converges, globalizes
– The innovation that drove the Industrial Revolution was based
in England, and for years the British Government maintained
strict export controls on technology and people to prevent the
movement of capital out of the U.K. – It failed, however, to stop
the outward flow!

IT Innovation moves Westward
The knowledge and experts escaped, moving the center of
innovation into the United States by the early 1900s, with its
large local market and freedom to pursue new opportunities.
With a strong investment in education, a high degree of
economic freedom and strong intellectual property protection,
the U.S. remained the world capital of innovation and technology.
The next great wave of technology advances began just a few
miles away as New England was building the first industrialized
factories in the U.S. Years later the computer industry emerged
in and around Boston, Massachusetts, along the corridor
defined by Route 128, where Digital Equipment, Data General,
Lotus Development and dozens of world-class innovators
thrived.

IT Innovation moves Westward
As the Personal computer took over the business world, the center
of innovation moved westward to Silicon Valley in California and
Silicon Forest in Redmond, WA with the likes of Intel, Microsoft,
HP, Palm, and Oracle.
Another shift has been underway since the mid-1990s as the
semiconductor and electronics manufacturing has moved off
shore to Greater China and the new center is China with Shan Zhai
Ji simply a direct reflection of the roots of creativity and
innovation, transferred from the high-tech hallways of Silicon
valley to the back alley’s of Shenzhen.

One-minute Chinese
Language Lession
• = Shan - Mountain
• = Zhai - Fortress, hideout
• = Ji - mobile phone

Which one is the real
Apple iPhone- Can you tell?

What is a Shan Zhai Mobile phone?
Early Shan Zhai mobile phones were inferior brands that
where unknown. They put on the label “CECT”on the
mobile phones and paid CECT company a certain amount
of cash to use its brand name. Later on, there came out a
variety of new brands. Some are named as Sunyericcsun,
NCKIA or SAMSING, leading customers to mistaking them
as the famous brands. Shan Zhai
You can find anything printed outside the package, Combo Shaver
except for the address of the real manufacturer. and cell phone
Extremely powerful functions with extremely low price.
Extremely fancy appearance with extremely unreliable
quality.
During recent years, Shan Zhai mobile phones have
shown pretty impressive innovation in terms of
technology, appearance and manufacturability which find
no parallels. A lot of unusual technologies and designs
are combined together. These combinations brings out a
How about a
wild variety of functions, though most infringe on the
shave with
original manufacutrer in some way.
Now, Shan Zhai mobile phones have become part of the that call?
non-mainstream culture. It increasingly attracts more and
more people with the so-called Shan Zhai spirit, - wild
ambition, innovation and endless catering to the need of
customers.

Shan Zhai Spirit
Be extremely creative, brave, and not pay too much
attention about the low profit. Make everything
possible. Try super hard to satisfy Customer demand
Create new demand even if it didn’t exist before.
Nothing is impossible to a willing mind!
The biggest problem is the quality.
Shan Zhai's way to “success”
Multilevel and diversified markets in China, worldwide
Mobile phones became an everyday consumption.
Includes any functions that the customers could
imagine
“We are witnessing the rise of the hacker-entrepreneurs, it is a
classic Silicon Valley legend brought to the back alleys of Shenzhen”.
Karl J. Weaver, Shenzhen – January, 2009

High-Tech Golden Egg with
“Taiwan Inside”
China - largest handset market – More than 620 million
cell phone users.
Every month, China adds another 8.52 million new
mobile phone users.
Since 2007, there has been a new wave of self-branded
or unbranded \"white-box“ handsets, known locally as
\"bandit cell phones“ 90% using MediatTek chips.
Cheap ' bandit cell phones' have carved out a massive
niche for themselves in China' burgeoning handset
s
market, with Taiwan' Chips, LED, PC Board and panel
s
makers playing key roles in the process.
China’s 900 million rural dwellers are set to become the
next engine of rapid growth for the country’s handset
industry.
Over 250 million Shan Zhai Handsets were produced in
2008

Annual Handset Output
Volumes in China

China’s Handset Market, Q4 - 2008
Source: CCID Consulting, Dec. 2008
Chinese Handset vendors use the Mediatek SoC
solution include Gionee, Lenovo, TianYu, Haier and
Shan Zhai Ji also use MTK - Mediatek chips to gain
important time-to-market results. TianYu and Lenovo
use MTK chips in all phones – they are growing.

Sales Situation of China's Mobile
Phone Market, 2006-2008
Source: CCID Consulting, Dec. 2008
China' domestic mobile phone manufacturers are on the edge of
s
tough existance and survival under attack from foreign brands and
Shan Zhai Handsets. The rise of “Shan Zhai\" handsets, has impacted
traditional players – Many players are spinning off their handset
business.

Mobile Phone Retail Channels in China
Mobile Phone Retail Channels in China
Mobile Phone Chain Stores
Source: CCID Consulting, Dec. 2008
Mobile Phone
Chain Stores
Business Halls
27.1%
Supermarkets & Shopping
Professional
Malls
Mobile Phone
Mobile Phone Counters in
Stores 45%
Computer Stores
TV shopping
TV
Business
Shopping
Halls 15%
Online Shopping
4.5%
Other
Supermarket &
Shopping Malls 6%
Other 1.4%
Professional Mobile Phone
Stores
Online Shopping Mobile Phone Counters
in Com puter Stores 1%
0.3%

Bandit Phone Characteristics, usage appeal
Targeted for China’s rural markets
They can be very cool looking,
imagine Spiderman cell phones
They are very cheap, feature-to-
feature compared to name brands
Constant style and design changes
are assured in a short time frame –
the sky is the limit!
Provides innovative solutions to
previously tough technical
challenges

What type of handsets can we expect?
7 speaker cell phones for rural farmers,
who need to hear ringing from a distance
Students use same speakers to
reproduce
Dance floor or boom box music environs
4 bright LED lights to server as a dual
Cell phone and powerful flashlight.
For Senior citizens, big sounds, big
displays and big key caps
For people who work outside in the
Fields, an extended battery life handset
For senior citizens to listen to various
Broadcasts, FM radio, local TV tunner
Religious handsets and software Money
authenticity readers
Sports venue branding (2008 Beijing
Olympic “Fuwa” phone)
Consistently support two SIM card slots Budda Mobile

This is an ordinary Shanzhai mobile phone
with straight silvery appearance not as wild as its name.

However, it includes a Super vibrating low-
pitched woofer in the back of the handset
Two amplifiers bring out the effect of vibrating low-pitched woofers
playing ear-splitting music. Make sure that you can' miss any call even
t
in a noisy train station.

Includes: 2 sim card slots, and an
extraordinarily long standby time
The Claim: Extraordinarily long
standby time of 366 days

Specific Hot selling Shanzhai mobile phones
1) Cigarette? Mobile phone? Or a mixture of both?
2) My Ferrari consumes no patrol.
3) Big Thunder phones.
4) Fierce Shanzhai, big cannon “paparazzo” mobile phone.
5) Ouch, a hidden mobile phone camera!
6) Watch-like mobile phone with hidden camera
7) Orange: HiPhone
8) Transformation
9) 800RMB Vertu mobile phone
10) PSP mobile phone
11) Shanzhai mobile phone welcomes the Beijng Olympics
12) Buddha preserve me - mobile phone blessed by eminent monks.
13) Shanzhai' little brother
s

Cigarette? Mobile phone? Or a mixture of
both? – A real converged device.
This is the Perfect combination of mobile phone and
a cigarette pack, for those infectious smokers on
the go.

Cigarette? Mobile phone? Or a
mixure of both?
The most incredible one can be put in at most 7 cigarattes of
various brands such as Baisha, Marlboro or Zhongnanhai. If
you are a heavy smoker or simply want to be very cool, now
listen to me, you really need this.

Cigeratte? Mobile phone? Or
a mixture of both?
Chonghwa, Panda, Marlbara, 555, Yuxi, Furongwang, any famous brands that you
can think of. All of them are produced-with honor, by a sound “China
Communication Facilityies Co., Ltd.”whose location still unknown.

My Ferrari consumes no Gasoline
When you Open the battery
chamber...Even the shape of the
battery resembles an engine.
Actually a Ferrari mobile phone.
phone

My Ferrari consumes no Gasoline
Shan Zhai products are just for Ferrari, Porsche, BMW, Hummer, Cougar,
Benz... Also, in fact any brand names that you can call out.

The so-called Big Thunder phone!
Looks just like a normal phone... Double SIM cards and
can be used simultaneously? That' not unusual for
s
any Shanzhai mobile phone.

Big Thunder phones
However, when it turns around...
The unique aura hits you in a sudden.

The Big Thunder Phone - is
a Boom Blaster
Eight amplifiers!!!
For the volume-
Level 1: already
powerful. Level 2: Feels
noisy and ears
uncomfortable. Level 3:
Can be heard from every
corner of the room,
sharply penetrating.
Above Level 3, I believe
everyone around would
get very very annoyed. I
tried only once and dare
not try it again.

Fierce Shanzhai,- big cannon “paparazzo”
mobile phone
Open the packaging and... now you see it...
Before we fix on the “big cannon” lens, let' s
take a look at the impressive design of this
wild mobile phone. Above the low-pitched
woofer is a 1.3 megapixel camera. Around the
lens is a specificly designed flute to insert the
Easy steps - put the lens in the slot
“big cannon” lens.
and lock it by rotating clockwisely.

Fierce Shanzhai, big cannon
“paparazzo” mobile phone
From side, it looks pretty much like a
professional long lens camera with the “big Rotate 3 rounds, and here we make
the first mobile phone camera with a
cannon” lens.
6* optical zoom lens. With it, even the
little bird standing on the wire can be
captured clearly!
In a nutshell, this is a universal mobile phone
which is featured with 3 inchs touchscreen,
Chinese handwriting, double SIM cards,
additional MicroSD slot, bluetooth, MP3 player,
6+1 super big loudspeaker and megapixel
camera. Anything you can think of. That' the
s
unique philosophy of Shanzhai!

Fierce Shanzhai,- big cannon“paparazzo”
mobile phone
Try its performance with 6 times telescopic effect. We focus on the clothes store on the
other side of the street. On the left is the preview without the lens, just like taken by an
averge mobile phone camera.You are not able to tell the store name and the street is
unecessary. On the right is the performance of “big cannon”. It' much closer now and
s
you can even see the pretty storekeeper preparing for the store opening, and of course
the words on the poster. The big cannon does deserve the reputations it enjoys.

Fierce Shanzhai, big cannon
“paparazzo” mobile phone
Shan Zhai handsets are famous for
surprises. In spite of 6.1 soundtrack, 6*
telescope effect, we have even another
function that you would never imagine.
The intrigue hides simply on the
seemingly ordinary battery
compartment. As you press this long
button, the light on the left will radiate
purple beam. However, it' neither a
s
flashlight nor additional flash for
camera.
It’s a money
authentication
reader

Ouch, a hidden mobile phone camera!
In this technologically highly developing era,
walls not only have ears, but also pinhole
cameras, and also SD999- the king of secret
peering . It can easily expose your secrets to
the sunlight!
Inserted inside is a radio wave reciever.
Together with a monitoring video camera, it
can send videos recorded through air. The
effect distance is 10-30 metres.
For those who want to monitor their house but have no professional equipment, this is
like a stove fire in snow. To mothers cooking in the kitchen that worries about their
babies playing in the living room, this will make it possible that they can cook and
take good care of the babies at the same time. And of course, this is also the best
choice for those who enjoy peeping on others' secrets.”

Ouch, a hidden mobile phone camera!
SD999 works as a remote monitor in such way: it need no wires, no 3G, no
transmission fee. From the screen of mobile phone, you are capable to see
anything within 10 metres. Taken off this video function, SD999 is just a normal
Shanzhai- touchscreen, stereo loudspeaker, NES, 1.3 megapixel camera,
microSD card slot... All nothing special for a Shanzhai in Shenzhen.

Dick Tracy Watch mobile phone
with hidden camera
This watch would look
very geekish for a female
to wear.
On the watchband is actually a keybroad on which you can
simply dial phone numbers
Some more wildly This “watch phone” has a tiny 0.3 megapixel camera on
it, hidden in a secret part, Perfect for candid camera.
innovative Watch phones You can pretend to be checking out the time while
actuall take a picture of the hot girl in front. This watch
phone is a favourite for many people.

Orange: HiPhone
Like an
iphone, with a
gravity
inductor
inside, it can
also rotate
screen
At the first sight, you automatically.
simply won' believe
t
this is a Shanzhai
mobile phone. It' more
s
HiPhone provides acceleration
games, caculator, WAP webpage than 90% looks like an
browser, memo, MP3 play that can iPhone!
copy songs and play
simultaneously, MP4 player,
calender, graphic operation
interface like Multitouch, selecting Chinese Orange only
costs ¼ of the price
songs by shaking, audio recorder, of Apple iPhone. You
TXT e-book reader, inside can even buy it at
bluetooth. Some functions are even RMB 999
superior to iphone!

Transformation Shan Zhai handsets
Looks just
like nothing
but an
ordinary
Shanzhai
mobile
phone
It can slide
out like this.
But it's
common.
And can slide
like this.
And like this....
Hmm, a little
Have you ever imgined that?
interesting.

800RMB Vertu Luxury mobile phone
Vertu in Latin language means
“high quality, unique”. A Vertu
mobile phone costs 100,000 to
150,000 RMB. It is made by hand
by those craftmen who makes
Rolls-Royce motor cars. A
variety of jewelleries and
expensive metal are used in
producing a Vertu, selling in
limit quantity. There are two
types of shells- gold and
platinum. The screen is made of
800 RMB? A Vertu? Yes, your ears are hearing
blue crystal, never gets a
correct. However, this Vertu is not the one
scratch on. Under every button,
larvished with diamonds and gold, but a Shanzhai
there' a ruby, to make sure of
s
Vertu. The Shanzhai Vertu copies almost every
touch exactness.
detail of a real one- shining shell and special V-
shaped buttons. Those who have a real Vertu must
get mad if they know the price of this one.

Play Station Portable (Mobile phone)
Shanzhai started to Expert in multimedia, entertainment
and games, it has inserted
promote PSP mobile Nintendo game emulators, with
phone even earlier than classic games including Super
Mary, Contra, Bomberman,
Sony. Salamander, etc.
Whether the buttons in the front, or the
loudspeaker at back, the special metal ring by
the side of the lens, all looks 90% the same with
the original. Only difference is this one is half
the size of a real PSP mobile phone, much more
exquisite.

Shan Zhai mobile phones
welcome Beijng Olympics
This handset is specifically for Beijing
Olympic Games. Apart from its very
Chinese design, together in the package
also includes a Chinese knot.
Catching the atomsphere of
Beijing Olympic,
a new set inspired by Fuwa
Huanhuan came out.

Buddha preserve me - mobile
phone blessed by eminent monks
• It is blessed
by eminent
monks and
even has a
certification
This mobile phone
for proof. is called Buddha
• A perfect heart and karma.
combinatio It has a sounding
n of religion background which
and high- is not to be taken
lightly.
tech.

Shan Zhai's little brother
It looks like just a pari of
sunglasses
In fact, it' both a
s This is a sunglasses MP3
pair of sunglasses player with 1GB storage.
Those three buttons are
and MP3 player. shortcut keys.
Looks like the “FBI” There are multiple colors
of them. The earpieces can
in hollywood films? be adjusted and fit you
perfectly.
They are copied from
Oakley’s design

Bandits' Secret Weapon:
Taiwanese Technology
• Handset chips are the most
critical component to design a cell
Phone–MediaTek rules this market!
• In Shan Zhai land, MTK –
Mediatek inside is true branding
power – deeply rooted in Chinese
Consumers minds – “MTK inside”
• Mediatek has launched a
Revolution in China’s handset
Industry, which has helped “Made
in China” cell phones narrow the
Gap with international brands.

90% share of China’s mobile phone chipset
market
160 million chipsets for cell phones shipped in
2007, that is 60% of its total revenues, 95% of
those orders cames from China customer
MTK system-on-a chip is creating a disruptive
innovation revolution, rewriting the rules in a
1.2 billion a year handset industry.
SoC (system on a chip) integrates software of
the phones complex functions onto a single
chip, the software includes a menu for simply
adding hundreds of function, giving it the ability
to tailor to specific vendor product design
requirements.
The guts of these 250 million China-made
handsets rely on major components and major
assemblies by Taiwanese vendors

China’s Domestic Mobile Handset Industry
integrates with Taiwan’s ICT Supply-Chain
• Giantplus Technologies,
small/medium sized TFT
Final Assembly, QC
display panels, Plotech
Foxconn
Technology’s printed
circuit boards, Harvatek
TFT, LED
Inc’s LEDs and Elan
displays
Microelectronics Corp’s
Software
chips to Premier images
and Altek Corp’s camera
Camera modules
modules, WPG Holdings
Electronics component
Silicon chips
services and Foxconn’s
Finished phone assembly
(EMS) services,
Printed Circuit Boards
Taiwanese companies
have built the world’s
Crystals, LEDs, Resistors
biggest handset industry
in China.

Disruptive Innovation from a
Silicon Chip (SoC)
Combining Taiwan’s handset technology with China’s huge
handset market and manufacturing environment, has created an
emerging market trend of good quality, fair priced Shan Zhai ji.
MediaTek is the original catalyst of “Bandit phones”, however,
calling these phones low value is unfair.
China’s handset vendors possess strong capabilities in industrial
and mechanical design, also network and inventory management,
they can get products to market and expand scale
Originally, Tier #1 handset brands controlled
design/manufacturing of cell phones from start-to-finish,
monopolized the setting of handset specs and standards,
dictated OS and chipset design core of each phone, controlling
supply chain, chipsets were limited to Qualcomm, TI or Infineon
OS platforms.
Taiwan ODMs served big OEMs, could not gain critical mass for a
long time, then MTK had a technology breakthrough, launched
disruptive innovation and helped bridge the chasm between
handset manufacturers and handset chipset makers. Innovation
through differentiation!

Shan Zhai Ji by any
other name!

Breaking the Mobile Phone
Chipset Monopoly
The development process of a new cell phone, from R&D and circuit
and mechanical design to tooling and mass production, takes 9
months.
MTK’s handset chipset platform integrates complex technical devices
(digital camera, video camera, MP3s, RF radio, PDA, PIM functions)
all on one chip, has customized 100 different modules for customer
differentiation. After checking off functions needed, a price is quoted
to each customer, then Customization of the chip and software takes
just a few days to be ready! Now, it takes only 1-3 months for a new
phone
MTK chips help strengthen handset vendor’s strengths in software
integration capabilities, thereby allowing them to concentrate
resources on developing new Applications/functions.
Handset vendors are able to streamline product design process and
this allowed many new handset design houses to pop up for the past
3-4 years in Shenzhen, Beijing and Shanghai. Now orders for as low
as 20K~30K can be delivered in 45 days.

Complete Turn-Key Operating Model
MTK has transformed itself into a customer
service-oriented software company MTK has
focused the
energies of
Bandit
Handset
troops, now
able to
challenge
established
armies of
Nokia and
other big
branded
multination
al handset
players

Bridging Global Shan Zhai Ji Markets
Taiwan’s ICT sector is helping China’s phone vendors
develop presences in emerging markets around the world, to
penetrate lower end markets that multinational brands have
ignored.
MTK has set up branches in India, is acting as a match-
maker to introduce other Chinese handset customers,
helping telecom operators in many countries connect with
mobile phone vendors in China.
China’s mobile phones have essentially replaced MP3
players, FM radios, telephones, digital cameras and TVs, all
this now going to emerging markets.
Shan Zhai Ji handset vendors have adopted a “Blue Ocean”
strategy of selling into emerging markets where price is very
sensitive and quality not expected to last forever – they sell
well and are undercutting Western brands in these markets,
just like they have in the China market.

From birth as Shan Zhai Ji to global brand
The chance to grow into Shan Zhai Ji, to
produce handsets with, no-name, no brand,
no service, no guarantee, no manual, not sold
in operator-sponsored retail chains, many
Possible Network access
designs started to use MediaTek SoC chips.
license verification and
approval means operators
2007 2008
Domestic License will begin welcome them
requirement to into their networks
produce handsets
2005
waved to stir on
competition
2001
2009
China’s Handset
industry starts to Possible partnership with
rise China mobile for “Xin Ji”
handset customization
Today’s Shan Zhai handset vendors have projects
a real chance to move from back alley’s
to boardrooms – the possibility exists to
create a global brand

Shanzhai mobile phone's Blue Ocean
strategy graph and coordinate system
Shanzhai mobile phone
high
Blue Ocean Standard mobile phone
Strategy is a way
to make the
competition
irrelevant by
creating a leap in
value for both the
company and its
customers.
low
Target price performance individuation
marketing service
Intellectual quality
license
customer
property
group
•Mobile phone have become
Add various outstanding
“everyday consumption” Eliminate licensing of
Functions @ Extremely
Intellectual property
•Lowest cost gives it a low prices
competition advantage
•Mainly focus on rural and Decrease Quality low-
Create Distinctive feature
middle and low level cost chip, manufacturing
characteristic
service marketing
markets
Target customer group
•Distinctive characteristics

Conclusion
The Globalization of Technology has caused the global
supply chain shift to Greater China for the entire handset
ecosystem, technology continues to migrate Westward.
The Local Chinese and Shan Zhai handset market
vendors are a very important growing handset market
channel, set into motion by MTK – MediaTek’s Blue Ocean
strategy with destructive innovation results in the handset
industry the last two years.
We are witnessing the emergence of a new Hacker-
entrepreneur class of vendors able to create new brand
adoption.