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NOVEMBER
16, 1999 PRESS RELEASE


Release

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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© 1999 IC Insights, Inc. All rights reserved. Site
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