China's shipment in mobile phone market saw a 17.8% drop in the first half year

China Academy of Information and Communications Technology said in the report that newly issued models fell 30% year-on-year to 397 during Jan-June period.

Bottleneck in technological innovation, product homogeneity and lower replacement ratio have resulted in shipment decline.

Industrial veterans said that mobile phone sales have gone to the stage where customers want more exquisite handsets with significant functional upgrades or innovative applications.