Sharp to target wealthy cellphone users in China

TOKYO (Reuters) - Sharp Corp (6753.T) will target wealthy users in China with its mobile phone launch later this month, seeking growth in a market that has defeated its Japanese peers.

Sharp is aiming for upscale users in Shanghai and Beijing to avoid direct competition from lower-priced phones by global leaders such as Nokia (NOK1V.HE) and Samsung Electronics Co Ltd (005930.KS), which have greater economies of scale.

The move follows pull-outs by fellow Japanese handset makers Matsushita Electric Industrial Co (6752.T), NEC Corp (6701.T) and Kyocera Corp (6971.T), which failed to earn a profit in price-competitive China despite a lineup of some of the world's most cutting-edge phones.

Sharp will begin selling its first China handset -- an adapted version of the Japanese 920SH marketed by carrier Softbank Corp (9984.T) -- later this month for a price officials said would be "at least 3,000 yuan" ($434).

Sharp, the largest handset maker for the Japan market, will supply two or three additional Japanese models in China by year-end, said Yoshisuke Hasegawa, group general manager of Sharp's communication systems group.

"We hope the business will be able to stand on its own two feet " in 2009/10, he told reporters after a news conference. "The next step could be India or Indonesia -- growth lies overseas."

Shares of Sharp closed down 2 percent at 1,684 yen, in line with the benchmark Nikkei average .N225, which fell 2.1 percent.

(Reporting by Mayumi Negishi; Editing by Chris Gallagher)