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China will produce nearly 500 million mobile phones in 2007, or more than 40 percent of the world’s total.

Around 400 million mobile phones of the cell phones will be exported, according to the economic restructuring and operation department of the Ministry of Information Industry, adding the forecast figure is 41 percent higher than the 2006 output.

The demand is likely to grow, PC World reported, citing a report from market research firm In-Stat that said worldwide use of smartphones, or Web-enabled mobile phones, will increase by an average of 33 percent each year through 2012.

There are currently 38 companies in China making mobile handsets, according to the report.

Nokia recently predicted that the global mobile phone market will increase by 10 percent in 2008 to roughly 1.2 billion units, according to Xinhua news agency.

Nokia leads in the Chinese handset market. Chinese mobile phone manufacturers shipped less than two-thirds as many devices to Chinese retail outlets than Nokia.

Chinese mainland cell phone outlets sold 78.71 million mobile phones in the nine months. The market share was equal to only 62.3 percent of that of the Finland-based Nokia on the mainland.

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