In-Stat published its outlook on Chinese mobile phone and handheld market. Multimedia phone shipments in China will reach 165.0 mln in 2011, representing a penetration rate of 81%. High-pixel camera phones will be the next competitive focus in China’s multimedia phone market. Mobile phone makers are aiming to change cellphones into personal communication and entertainment centers. Chinese mobile users show a strong preference for combined MP3 players/mobile phones. Around 70% of Chinese music phone and camera phone owners express strong interest in more high-end equipment.