Mainland China is expected to increase output of VoIP phones by 34 percent in 2007 to more than 29 million units, spurred by growing domestic and global demand, according to Global Sources' China Sourcing Report: VoIP Phones.

"China's VoIP phone industry is poised for continuous growth, with both production and exports forecast to grow," said publisher of the report, Mark A. Saunderson. "Manufacturers are developing product lines and raising output capacity."

The report indicates mainland China's exports of VoIP phones are expected to reach 21 million units in 2007 -- up 26 percent from 2006.

Saunderson said: "The strong growth of the VoIP market is expected to continue, as VoIP software like Skype and broadband Internet gain greater market penetration."

The report shows VoIP suppliers in mainland China have excess production capacity to respond to increased demand, which is growing at a brisk pace.

Of the mainland China suppliers surveyed regarding their production capacity for VoIP Phones:

• 28 percent reported spare capacity of 60 -- 90 percent
• 22 percent reported spare capacity between 30 -- 59 percent
• 34 percent reported spare capacity of up to 30 percent

The report also shows key pricing and market trends:

• The supply of USB phones is expected to remain strong in the short-term
• The demand for standalone phones is projected to grow in the next few years
• Prices are expected to drop as supply grows and chipset costs drop

In-Factory Interviews, Detailed Supplier Profiles and New Export VoIP Phones

The 108-page China Sourcing Report: VoIP Phones provides proprietary market information from in-person factory visits to 22 makers and interviews with 29 more suppliers. The surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Information about Greater China VoIP Phone suppliers and products can be found at http://www.globalsources.com/manufacturers/VoIP-Phone.html .