China's upstart smartphone maker warns shakeout will get worse

Hong Kong

THE co-founder of one of China's hottest smartphone makers says a shakeout in the industry is going to get worse before it gets better as dozens of companies with similar products battle for market share and Apple Inc collects virtually all the profits in the business.

"We're going to have to survive the next few cycles," said Carl Pei, the co-founder of OnePlus. "A lot of pure plays will disappear and big companies will withdraw from the phone market."