There has been nearly ten years since China involved into handset manufacturing industry from 1998, the gap between domestic brand handset and foreign brand hand set is getting smaller, the localization degree of material, facility and fixture for handset manufacture are getting higher and higher. But domestic brand handset is still in hard ship in the course of China handset industry development， there still has big gap in many aspect for domestic brand handset to catch up with well known foreign brand handset like Nokia，Sonyeriesson，Motorola ete. At the same time, domestic brand also meet with great impact from “ShanZhai” handset these years. This paper analysed current situation of China handset industry, try to give some reference for “ShanZhai” handset how to improve their competence and how to establish a brand, into the ranks of the regular handset production.
