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End of Wild
Ride Ahead for Handset Semi Industry
SCOTTSDALE, Ariz., August 22, 2001
- Given current indications, the worst may be over for handset semiconductor
manufacturers, according to Cahners In-Stat Group (http://www.instat.com).
However, the high-tech market research firm reports that even though
the market is indeed on the road to recovery with total worldwide
handset semiconductor revenue set to increase from $14.6 billion
in 2001 to $21.7 billion in 2002, recovery will not occur overnight.
According to Allen
Nogee, Senior Analyst with
In-Stat's Wireless
Component Technology
Group, "2001 has been a tough one for semiconductor manufacturers
in general and handset semiconductor manufacturers in particular.
At the beginning of the year, component manufacturers were optimistic
of increased demand, but that quickly became tempered when a slowing
worldwide economy dampened consumer demand for new handsets." By
the end of Q1 2001 the glut of both handsets and handset components
was growing, and more and more carriers were delaying their 3G-rollout
plans. "Gluts of both handsets and components still exist, but large
reductions in production have helped to ease the oversupply problem.
By the latter half of the year, production and demand should be
in check, and 2002 looks like it should be a better year than 2001,"
says Nogee.
In-Stat has also found that:
- While 2001 won't be remembered as
a record setting year in terms of handset semiconductor revenue,
it won't be remembered for any major handset innovations either.
Manufacturers are withholding major investments in 2G products,
and are instead focusing on their 2.5G, and 3G offerings. However,
with delays in deployments of these services by carriers, development
of these future products has slowed as well.
- The Korean market will represent
a bright spot for handsets as demand there is growing as opposed
to other regions where it is currently negative.
- China's ever increasing population
will provide a substantial market for 2G CDMA.
The report, "Handset
Semiconductors - Have We Reached The End Of The Wild Ride?"
(#WT01-07HS), analyzes some of the trends and technology in cellular
handsets and what they mean for semiconductor manufacturers. Forecasts
include units, ASPs, and revenue for the following handset semiconductors:
Bluetooth, GPS, MPEG-4 decoders/encoders, MP-3 decoders, analog
semiconductors, cdmaOne semiconductors, cdma2000 1X semiconductors,
GSM semiconductors, GPRS semiconductors, EDGE semiconductors, PDC
semiconductors, and W-CDMA semiconductors. To purchase this report,
or for more information please contact Matthew
Woods at 617.630.2139; mwoods@instat.com.
The report price is $3,495 USD.
Cahners In-Stat Group (http://www.instat.com)
covers the full spectrum of digital communications research from
vendor to end-user, providing the analysis and perspective that
allows technology vendors and service providers worldwide to make
more informed business decisions.
In-Stat is a unit of Cahners Business
Information (http://www.cahners.com),
a leading provider of critical information and marketing solutions
to business professionals and a member of the Reed Elsevier plc
group.
For more information,
contact:
Allen
Nogee, Senior Analyst - Wireless
Component Technology Phone: (480) 609-4538
Email: anogee@instat.com
Kirsten Skedd,
Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com
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