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iSuppli raises mobile phone forecast

Posted: 08 May 2006 ?? ?Print Version ?Bookmark and Share

Keywords:iSuppli? mobile phone?

Stronger-than-expected Q1 mobile phone shipments have prompted market research firm iSuppli Corp. to raise its 2006 forecast. The firm now projects 2006 mobile phone shipments of 932 million, up from 900 million previously.

Global mobile-phone production in Q1 reached 220 million units, down 9.5 percent from 243 million units in Q4 of 2005, said iSuppli. But the mobile phone shipments rose 26.1 percent year-over-year, indicative of continued strong demand.

Samsung Electronics Co. Ltd and Motorola Inc. defied the normal seasonal slowdown in mobile-phone unit production in Q1, bolstering overall global mobile phone sales, according to iSuppli Corp. Samsung produced 29 million phones, up 1.8 million units from 27.2 million in the Q4.

Number-two mobile phone maker Motorola closed the gap with market-leader Nokia, as its share rose to 21 percent, up 2.6 percentage points from 18.4 percent in the fourth quarter of 2005. Motorola was just 13.1 percentage points behind Nokia, compared to 16 points in the previous quarter with its Q1 shipments rising to 46.1 million units, up 1.4 million from 44.7 million in Q4.

The top-six mobile-phone makers were less impacted by the sequential slowdown than was the handset market as a whole, with their combined shipments declining by a relatively mild 6.3 percent during Q1.

On the other side, average selling prices continue to decline, with drops ranging from 4.9 percent for Sony Ericsson to 13 percent for LG Electronics. However, Nokia increased ASPs due to rising sales of higher-margin multimedia mobile phones.

EE Times

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