Domestic mobile phone manufacturer Bird Stock Company has started a new price war by slashing the price of ten of its mobile phones.

The price of its Duo Yi Sun E860 phone drops by CNY500, and the Duo Yi Sun E858 creates a new record for feature-packed mobile phones with a pricetag of CNY1699.

At the same time, Daxian Communications has released a new MP3 mobile phone called Hei Xian Feng D7120, one of the few with comprehensive music functions in the domestic market.

Both domestic and foreign manufacturers are finding it increasingly difficult to maintain growth momentum. Not only is the market saturated, but new manufacturers are crowding the competitive scape.