City dwellers are upgrading their phones to take advantage of features like color screens and built-in cameras, which means demand exists for TI's new chip.
"The replacement rate in China is very high, with replacements accounting for around 50% of
Nokia (NOC) and Motorola (MOT) have each managed to gain share by aggressively selling cheap handsets in China's less affluent interior. "They fully seized the opportunities in tier-two and tier-three cities and rural communities with their low-cost phone lines," Yin says.
TI also has rural residents in its sights, hoping they'll eventually upgrade to phones with multimedia features. "For many people