China Mobile to place contract orders for e-book readers with Hon Hai.

Taipei, Aug. 25, 2009 (CENS)-- China Mobile Ltd., the leading telecom service provider in China, has decided to contract Taiwan-based Hon Hai Precision Industry Co., Ltd., the world's largest EMS (electronics manufacturing service) provider to produce e-book readers, according to Wang Jianzhou, chairman of the firm.

Besides, Wang also indicated that the JIL (Joint Innovation Lab) jointly established by China Mobile, Vodafone, Softbank and Verizon is also going to cooperate with Hon Hai to develop more e-book readers in the future. He added that Hon Hai's cutting-edge production efficiency and unparalleled production capacity have been well recognized by the four telecom companies, making the EMS provider an ideal partner in development of the products.

With an estimated 10% of the total registered users of China Mobile's telecom and application services worldwide demanding e-book readers, Wang stressed that his firm will probably outsource a total of 50 million units. In fact, of its 500 million registered users, 300 million use its wireless music download services and 40 million subscribe e-newspaper service, indicating huge business potential generated by such value-added application services that contribute 27% to China Mobile's annual revenues. Wang said that his firm has been focused in the segment, with promotion of e-book readers in the blueprint.

Noteworthy is that after contracting China Mobile to turn out e-book readers, Hon Hai, which has also been supplying such products to Amazon.com, will surely enjoy a shipment boom and solid sales performance in the future.

Coincidentally, Prime View International Co., Ltd. of Taiwan, the world's leading e-paper display supplier, is also planning to contact Wang for cooperation on production of e-book readers. The firm is also the major supplier of e-paper display for Amazon's Kindle e-book readers currently.

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