Smartphone supply chains are starting to see increased orders from China-based telecom operators that are looking to further compete in the local smartphone segment, according to industry sources.

Operators such as China Mobile, China Unicom and China Telecom are all putting in increased orders to smartphone chip makers and panel makers to provide components largely for smartphones that are expected to be released later in 2013 and throughout 2014, the sources said.

The telecom operators expect demand to be steady for low-priced smartphones in China and also expect a surge in mid-range and high-end smartphone demand as they move more towards 4G services in the nation. Some market estimates even stated the three operators are likely to ship 10 million products per a month through 2013 and into 2014.

The sources also revealed that supply chains are becoming increasingly interested in low profit margin handset markets where product life cycles are relatively shorter and there is a more consistent demand for components.

Additionally, consumers in China are increasingly interested in smartphones sized 4.5-inch and above while reserves for 3.5- and 4-inch units and currently high, the sources added.