Skyworth plans to invest over CNY1 billion in China's mobile phone business this year.

The strategy was disclosed to local Chinese media late last week.

The plans include setting up a new production line; selling 1 million mobile phones both at home and abroad in 2005; creating a new channel pattern that features better profit sharing; launching a full spectrum of mobile phone products covering both middle, high and low-end products; and developing 10-20 new types of mobile phones this year.

Chinese and foreign handset manufacturers are seeing enhanced competition and slowing growth in consumers' purchases of mobile handset.