But the bad news is growth will slow in the next 12 months, according to iSuppli.
Handset sales in China reached 229 million units in 2007, representing 76.2 per cent growth from 130 million in 2006.However, iSuppli says the rate of growth will slow considerably in 2008, dropping to about 19.7 per cent to reach 274 million units.
The company says sustained increases in the Consumer Price Index (CPI), rising housing prices and major stock market fluctuations in China are expected to hurt consumer confidence in 2008.
Except for handsets supporting the Global Positioning System (GPS) and mobile TV functionality, iSuppli says there are no popular new handset features to drive new sales.
However, it does predict that sales of handsets supporting TD-SCDMA and EDGE will ramp up quickly in 2008 as they become more widely available.
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