Chinese cell phone makers have seen their share of the domestic market fall below 30 percent for the first time as overseas giants speed up their expansion in the country.

Home-grown players controlled a combined 28.56 percent of China's handset market in June, down sharply from a high of 60 percent two years ago.

By contrast, Nokia, Motorola and other multinationals are enjoying robust growth as they penetrate the middle and lower end of the market with promotions and new models.

Motorola alone is expected to claim a quarter of China's handset market by the end of this year, up from 21 percent in May.

Local players are being forced to rely on cheap exports to developing countries to maintain their business. Major local firms include Ningbo Bird Co. Ltd. and TCL Communication Technology Holdings Ltd.

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