iSuppli Raises Cell Phone Forecast, Warns of IC Shortages
By Mark LaPedus
Silicon Strategies
03/08/2004, 4:37 PM ET
EL SEGUNDO, Calif.--Market research house iSuppli Corp. has raised its forecast for cellular phone shipments in 2004, but it also warns of ongoing component shortages in the arena.
At the same time, the cellular phone chip market is expected to reach $20.2 billion in 2004, up 13.3 percent in 2003, according to iSuppli.
Citing growth for camera phones and feature-rich devices, the market research firm projects that cell phone shipments will hit 570 units in 2004, up 3.6 percent from its original forecast.
This also represents a 9.4 percent jump over 2003, according to iSuppli of El Segundo. Originally, the firm projected 6 percent growth in 2004 over 2003.
The new forecast reflects stronger-than-expected growth in Q1. The cell phone market is supposed to be weak in Q1, but the business is shaping up to be one of the stronger periods. Unit shipments are expected to reach 135 million units, up from 125 million in iSuppli's original forecast.
On the other hand, OEMs are unable to ship as many phones as they would like due to ongoing component shortages. Parts in short supply are color displays, modules, sensors and others, according to iSuppli. |
