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Nokia Dominates 1999 Cellular Phone Handset Market
Nokia is forecast to ship about $14 billion worth of cellular phone handsets, which will contain about $3.3 billion dollars worth of ICs, in 1999

Scottsdale, Arizona -- November 16, 1999 -- IC Insights' latest research report---Emerging IC Markets 2000---shows the top 3 suppliers representing almost 60 percent of 1999's total cellular handset shipments (Figure 1). As shown, Nokia is expected to increase its lead as the number one cellular phone handset supplier by almost doubling its unit sales in 1999!

In 1999, total cellular handset unit shipments are forecast to increase an amazing 58 percent. This follows a 61 percent unit volume surge registered in 1998! Overall, cellular phones are forecast to outship PC units in 1999 by more than 2:1.

Figure 1

It is interesting to note that Nokia is forecast to ship about $14 billion worth of cellular phone handsets, which have about $3.3 billion dollars of IC content, in 1999. Of the top eight cellular handset suppliers, Siemens is forecast to display the highest growth rate increase in 1999 (although starting from a small base). Moreover, the company has an aggressive plan to almost double its cellular handset unit shipments in 2000 to 20 million.

Motorola has been working hard to make up for its slow start in the digital cellular phone market in 1997 and 1998. In 3Q99, 89 percent of the company's cellular phone sales were digital.

Throughout 1999, Ericsson was struggling to bring to market leading-edge cellular handsets. The company had lost significant marketshare to Nokia in 1998 and the first three quarters of 1999. In early 1999, Ericsson estimated that it would ship between 32 and 39 million cellular phones in 1999. The company stated in its 3Q report that its shipments in 1999 would be at the low-end of this range.

As of 3Q99, Ericsson was the only supplier of all the major digital cellular phone types (i.e., GSM, CDMA, TDMA, and PDC). While Ericsson's cellular handset unit marketshare is forecast to decline to 12 percent in 1999, it should be noted that the company is the largest supplier in the world of cellular/PCS basestation equipment. IC Insights forecasts that Ericsson will hold about 40 percent of the basestation equipment market in 1999.

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 October 1997, IC Insights offers coverage of global economic trends, the IC market forecast, 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.

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