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The technology "will pick up in the premium segments of these portables first, then it will migrate to larger sizes as production is refined and costs are reduced," Mr. Polgar said.
GE has since set up more than a dozen similar operations in an effort to expand beyond the premium segments in developing countries and to preempt emerging giants from disrupting GE's sales at home.
Spending is shifting from products to services, and from mass to premium segments," the report says.
Second: barriers to entry are much lower than in premium segments, suggesting that new entrants may quickly intensify competition.
Chang said the new launches will "address premium segments" but will be a few tiers down from flagship.
Chinese consumers are hankering after the good things in life and there is a marked shift in consumption from the mass to premium segments in several categories.
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"The premium segment is expanding," Mr. Reithofer said.
They usually downgrade from their premium segment and that doesn't work.
The country's premium segment, where Volvo will compete, is growing at over 100% a year.
The premium segment, in which the non-Chinese producers compete, accounts for barely 7percentt of overall sales.
Affected by contracting sales in Europe, both brands are trying to position themselves in the premium segment in China.
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