Mobile phone makers have been laying off workers for some time. Last week, Nokia announced its plan to cut 10,000 jobs worldwide by the end of 2013. Nokia Siemens Networks, the world's fourth largest telecom gear maker, has already said it will lay off about 300 employees in China this year.

In the 1990s, Motorola cellphones were regarded as luxury products in China. But by 1998, Nokia became the largest player in China in terms of mobile phone sales.

Motorola developed new smart phones based on android system in 2010, but faced fierce competition from other android phone makers such as South Korean company Samsung and Chinese company Huawei.