New research from Analysys shows that the market share of China's domestic mobile phone manufacturers has been declining and now accounts for less than 30% of the total.

Chinese domestic mobile phone brands accounted for more than 50% of the market at the beginning of 2004. However, by the fourth quarter of last year, its GSM mobile phones only took up 29.77% of the market.

As GSM mobile phones have taken a large percentage of the overall mobile phone market, analysts predict that the total market share of China's national mobile phone brand has dropped below 30%.

At present, most Chinese mobile phone manufacturers are suffering from a severe shortage of funds, which greatly holds back their further investment and development of new products.

Analysys forecasts that the market share of China's national mobile phone brands will continue to drop this year.