Konka's newly released financial results for the third quarter of 2005 show that net profit from color TV manufacturing and sales decreased by 38.69% and handset service dropped even more dramatically compared with the same period in 2004.

From January to September, Konka's mobile phone sales went down by 56.83% compared to the same period in 2004.

Konka says the reason for this dramatic decline is the over supply on the market and the fierce market competition between Chinese mobile phone manufacturers and their foreign counterparts, which has forced everyone to lower mobile phone prices.

Konka representatives have told local media that the company will devise new schemes for TV and mobile phone services by December this year.