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Wednesday, May 14, 2008
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As major EMS/ODM companies continue to face strategic and operational challenges, will we see another giant merger in 2008?
Yes, in the EMS space
Yes, in the ODM space
No, highly unlikely
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MARKET TRENDS > MAY 2008
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Mobile Handset Market Stays on Track in Q1

8 May 2008

The global mobile-handset market in the first quarter of 2008 appeared to be unaffected by the economic slowdown, with shipments rising by a double-digit percentage compared to the same period in 2007, according to iSuppli Corp.

Global mobile-handset shipments reached 296 million units in the first quarter of 2008, up 17 percent from 253 million in the first quarter of 2007. While shipments were down 12.4 percent compared to 338 million in the fourth quarter of 2007, this decline represents normal seasonality for the mobile-handset business, which typically undergoes a deceleration following the peak selling period in the fourth quarter. In the first quarter of 2007, for example, shipments decreased by 12.8 percent on a sequential basis.

China players emerging
While the top handset brands are in neck-and-neck race, the industry is keeping an eye on emerging players in the market—particularly China’s Huawei and ZTE.

ZTE ended the first quarter of 2008 with shipments of 6 million units, up 51.5 percent from the same quarter last year. These two OEMs’ products can now be found on US operators’ networks, opening up the possibility that the companies could expand their presence in the United States in the coming years.

www.isuppli.com

 
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