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Phones hitting limits.

El Segundo, CA -- Global mobile-phone unit production growth will decelerate to 4.9% in 2006, rising to 850 million units, up from 810 million in 2005. Shipments rose 30% in 2003, 25.1% in 2004 and 13.6% in 2005. Revenue is also expected to decline, and will not recover to 2005's peak level until 2009, iSuppli Corp. (isuppli.com) predicted in January.

A competing research firm, IDC (idc.com), said worldwide shipments totaled 825.5 million units, up 16.7%. "[T]he fact that this is the second consecutive quarter with shipments over 200 million suggests that the market will continue to enjoy solid growth into 2006," said IDC research analyst Ryan Reith.

iSuppli forecast worldwide factory revenue from production of mobile phones to decline 4.7% to $109.7 billion in 2006. Growth will then resume but will take until 2009 to reach 2005 levels. The firm blamed the revenue drop on the decelerating growth rate in shipments.
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Title Annotation:Market WATCH
Publication:Circuits Assembly
Date:Mar 1, 2006
Words:160
Previous Article:Production index slows in January.
Next Article:PC demand remains healthy.


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