Research and Markets has come out with an extensive report dealing with the how’s and whys of leading handset manufacturers rushing to China to set up their research and development (R&D) facilities. The report extensively points out the experience of the existing players, the economies of scale which the Chinese market provides for R&D exercises, as well the immense business opportunities which the fastest growing handset market provides by being close to it. Chinese mobile subscriber figure has already jumped to a staggering 450 million mark, and this segment is witnessing a growth of over 20 percent on an annual basis.

The report presents the case of leading European and US mobile phone brands Nokia, Motorola, Siemens and Sony-Ericsson who have their major R&D facilities existing in China and how it is helping them in cater to China and other emerging economies in Asia which are presently showing an insatiable appetite for handsets. Among these companies, Nokia and Motorola also have their frontline production facilities in China. The report also talks about how Japanese and Korean electronic giants are leveraging their R&D presence in China in garnering big business bucks. For instance, Samsung has its facilities in Tianjin and Shenzhen and the company had clocked revenue of $1.4 billion from the Chinese market alone last year.

A detailed picture as how local vendors in China are assisting global telecom manufacturers in their R & D and manufacturing efforts is shown. It presents a detailed profile of as many as 27 such suppliers. In a nutshell, the report presents a bigger canvas encapsulating the reasons behind the R&D rush to China, the present status and the expected churnings in the future. China is the place to be.