China Mobile Sets TD-SCDMA Netbook Sales Target

Tencent Tech, 4/29/09

An industry source has stated that Category-A sales partners for China Mobile's (NYSE: CHL; 0941.HK) TD-SCDMA netbooks have signed guaranteed sales agreements with the operator. Manufacturers Lenovo (0992.HK), Tsinghua Tongfang (600100.SH) Haier, HP, Samsung and Dell each stand to receive a RMB 2,100 subsidy per unit if they can achieve sales of 90,000 units within 3 months. Founder Technology (600601.SH) will receive a RMB 1,500 subsidy per unit if it can sell 30,000 units within 3 months. If a given manufacturer does not meet the agreed upon target, it will be fined by China Mobile.

A separate source however stated that of the 90,000 units per manufacturer, China Mobile will be responsible for selling 60%. The source mentioned that China Mobile believes it is too difficult to control normal retail channels and so plans to sell the majority of the netbooks through its own outlets.

Keywords: 0941.HK 0992.HK 600100.SH 600601.SH China Mobile CHL Dell Haier HP Lenovo netbook retail sales target Samsung subsidy TD-SCDMA Tsinghua Tongfang wireless 3G Founder Technology Group computer

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