Asia PR News

EL SEGUNDO, Calif., June 30 /PRNewswire-AsiaNet/ –

After suffering the typical seasonal slowdown in the first three months of
the year, mobile-phone unit production will rise sequentially in the second
quarter and for the remainder of 2005, according to the market research firm,
iSuppli Corp. Mobile-phone production in the first quarter of 2005 amounted to
173 million units, down 13 percent from 200 million in the fourth quarter of
2004. However, production in the first quarter was up 2.4 percent compared to
169.5 million in the first quarter of 2004. The second quarter is shaping to
be better than the first, with production of 180.5 million mobile phones, up 4
percent from the first quarter and up 7.1 percent from a year earlier.
Shipments will rise 5.3 percent sequentially in the third quarter to 190
million and 8.4 percent in the fourth quarter to 206 million.

After rising 25 percent in 2004, mobile-phone unit production growth will
taper off this year. Production will rise to 750 million units in 2005, up
about 5 percent from 713 million in 2004. While growth is decelerating this
year, a shipment level of more than 700 million units is vast-no matter what
the product. With such a huge quantity, the law of large numbers begins to
take effect and a major growth margin becomes difficult or impossible to
achieve. Mobile-phone production growth is driven by purchases by new
subscribers and by buying of replacement handsets. Although some regions of
the world are becoming saturated, developing nations such as China and India
will continue to see strong subscriber growth. Even with subscriber growth,
mobile-phone shipments this year and in subsequent years increasingly will be
driven by replacement or upgrade sales.

For a comprehensive version of this press release, plus a figure showing
iSuppli’s quarterly mobile-phone forecast, please visit:
http://www.isuppli.com/news/default.asp?id=4481&m=6&y=2005

All Information and Intellectual Property Contained Herein is the Sole
Property of iSuppli Corporation

About iSuppli Corporation
iSuppli Corporation, the global leader in electronics industry
intelligence, provides market intelligence services for the EMS, OEMs and
supplier communities. iSuppli employs the world’s largest and most experienced
staff of component, systems and application market analysts. More information
is available at www.isuppli.com

SOURCE: iSuppli Corp.

CONTACT: Jonathan Cassell, Editorial Director and Manager
Public Relations of iSuppli Corporation
+1-408-654-1714 or mobile +1-408-921-3754

Web site: http://www.isuppli.com
http://www.isuppli.com/news/default.asp?id=4481&m=6&y=2005