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Technology Stocks : The New Qualcomm - a S&P500 company
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To: Dennis Roth who wrote (12830)6/21/2000 10:44:00 PM
From: Dennis Roth   of 13582
 
Major mobile phone makers to tap CDMA market

news.cens.com

Taipei, June 21, 2000 (CNES)--In a move to further
penetrate the international mobile phone market, several
major manufacturers in Taiwan will debut their latest
CDMA (code division multiple access) mobile phones
soon, industry sources said Wednesday.

GVC Corp. introduced its first locally developed CDMA
mobile phones in May and estimates sales of 200,000
units in 2000. GVC began delivering its CDMA mobile
phones to the U.S. last month, Huang Mun-hwa, vice
president of the firm, said.

Under a close technical tie with Hansol of South Korea,
Taiwan-based Compal Electronics Inc., will debut its
CDMA mobile phones in July, with sales expected to
reach 600,000 units this year.

Compal has invested US$6.5 million to obtain a 20%
stake of Hansol, to further its R & D activities. In
February, the firm reached a cooperation contract to
transfer CDMA technology from the U.S.-based
Qualcomm, according to Huang.

Other local mobile phones manufacturers, such as Acer
Peripherals Inc. and Dialer & Business Electronics Co.
should launch their CDMA mobile phones by the end of
the year. Most Taiwanese CDMA mobile phone makers'
revenue will grow in 2001, if mass production goes
smoothly, industry sources said.

CDMA mobile phone sales will be concentrated on
international markets, especially South Korea, Central
America, and mainland China. However, the
development of CDMA mobile phones will face problems
if the mainland insists on developing its own
TD-SCDMA mobile phone system in the future.

In February, the mainland authorities agreed to use the
CDMA mobile phone system offered by Qualcomm, as
part of China's inroad into the World Trade Organization
(WTO). But this political consideration may change, and
mainland China may develop its own TD-SCDMA
mobile phone system, the latest third generation
technology, according to industry sources.

((CCK))
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