Sales expectations from China:

In preparation for China's National Day holidays in October, distributors and retailers in the country have significantly increased smartphone orders but demand for PC-related products will be comparatively weak due higher-than-normal inventory levels, according to industry sources.

Currently, the most popular smartphones in China ranges between 1,000-1,500 yuan (US$146-220), and growth for the price segment in the third quarter of 2010 is expected to improve substantially, sources from China-based channel operators said. With Chinese consumers developing preferences for larger screens and higher resolution camera features, sales of 500 yuan entry-level smartphones have slowed this year.