Sharp to Sell Cell Phones in China before Olympics

Sharp Corp (6753.T) said on Friday it would start selling cell phones in China ahead of the Beijing Olympics, heading into a market where a rival has just pulled out in the face of fierce competition.

Sharp will be the only Japanese firm selling handsets in China after Kyocera Corp (6971.T) withdraws this month, hurt by lower-priced phones from companies like Nokia (NOK1V.HE) and Motorola Inc (MOT.N).

"There are a growing number of consumers in China who want to buy high-tech handsets, such as those equipped with cameras almost as good as digital cameras, even if they are expensive," said Sharp spokeswoman Miyuki Nakayama.

"People want a nice screen especially for the Olympics."

Sharp is known for its strength in high-tech mobile phone parts such as mid- to small-sized liquid crystal display (LCD) panels and small cameras.

Sales may start from around June, she said.

Nakayama also said Sharp aims for a global market share of 30 percent in LCD panels in 2010 or 2011, when a new plant is at full production capacity.

Shares of Sharp were up 1.5 percent at 1,763 yen as of 0053 GMT, outperforming a 0.6 percent rise in the benchmark Nikkei average (.N225).