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NOVEMBER 11, 2004 BULLETIN

Bulletin

IC Insights' New Emerging IC Markets Report Forecasts the
Top 10 Cellular Suppliers for 2004
Nokia leads all suppliers as total cellular handset shipments surge 29 percent!

IC Insights today released its forecast for the 2004 ranking of the worldwide top 10 cellular phone handset suppliers (Figure 1). After growing 24 percent in 2003, the worldwide cellular handset market is forecast to surge another 29 percent in 2004 to 670 million units.

Figure 1

IC Insights forecasts that worldwide cellular handset market growth will slow in 2005 to 5 percent, reaching 705 million units. However, it is predicted that the cellular handset market will continue to be a key driving force in the global IC market through 2008. In fact, IC Insights forecasts that the worldwide cellular handset market will exceed 1.0 billion units in 2008!

As shown in Figure 1, Nokia will maintain its position as the leading supplier of cellular phones in 2004. Although Nokia is expected to easily hold its lead as the number one producer, it continues to lose marketshare (5 points since 2002). Interestingly, the two largest Korean suppliers (Samsung and LG) together are forecast to gain 6 points of marketshare from 2002 to 2004. Overall, the top four cellular phone suppliers are forecast to represent two-thirds of worldwide 2004 handset production.

For 2004, the total cellular handset average selling price (ASP) is forecast to decline about 8 percent to $124.00. However, both Sony Ericsson and Motorola are expected to register strong cellular phone ASPs of $183.67 and $164.65, respectively. It is not a coincidence that each company’s product line is heavily weighted towards camera-equipped models. In fact, in the second half of 2004, camera phones will represent more than 50 percent of Motorola’s cellular phone shipments, and most likely over 60 percent of shipments from Sony Ericsson.

IC Insights' 2005 edition of Emerging IC Markets will be released at the end of November. The report includes an extensive IC end-use application database and forecast as well as individual sections covering wireless networking, cellular phones, video game machines, automotive electronics, digital cameras, PCs, DVDs, digital TVs, and more. The single copy report price is only $1,990 (binder or CD-ROM) with Internet-access and company-wide use license options also available.

About IC Insights

IC Insights, Inc., based in Scottsdale, Arizona, is dedicated to providing high-quality, cost-effective market research for the integrated circuit industry. Founded in 1997, IC Insights offers coverage of global economic trends, IC market forecasts, capital spending and fab capacity trends, product market details, and technology trends, as well as complete IC company profiles and evaluations of emerging markets for ICs.