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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: P2V who wrote (3839)	12/22/1999 1:07:00 PM
From: Jim Oravetz	Respond to of 5390

semibiznews.com Finland's Nokia extends lead in booming cellular market Cell phones to outsell PCs this year by more than 2:1 SCOTTSDALE, ARIZ.--While the three largest suppliers of cellular handsets are expected to hang on to their collective 60% market share this year, market leader Nokia Group will pick up 6 percentage points by nearly doubling its unit sales. The high-flying Finnish company is predicted to ship about $14 billion worth of cellular phones in 1999, or a growth rate of 98% over last year. These units will contain about $3.3 billion worth of ICs, according to IC Insights Inc. This year has been a banner year for cell phones. Unit shipments are forecast to jump an amazing 58%, the market research firm says. This growth follows a 61% surge in 1998. Cellular phones are expected by IC Insights to outship PCs this year by more than two-to-one. Among the top eight suppliers, Germany's Siemens is expected to show the highest growth rate, with a booming 175% increase from 4 million to 11 million sets, according to IC Insights. The market research firm notes that the company has an aggressive plan to nearly double its shipments next year to 20 million. N. 2 producer Motorola has been working hard to make up for its slow start in the digital cellular phone market in 1997-98. And in the third 1999 quarter 89% of the cell phones it shipped were digital. Even so, it will grow only 31% this year, meaning that its market share will fall from 20% to 15%, the Arizona market researcher predicts. Another supplier trying to battle back in digital phones was Ericsson. The Swedish company has been struggling this year to bring lead-edge cell hardsets to market, according to IC Insights. The company had lost significant marketshare to Nokia in 1998 and the first nine months of this year, the market researcher estimates. It will lose two percentage points of market share this year, IC Insights predicts, by growing only 39%, or only one-third as fast as Nokia. Big Three suppliers of cellular handsets hold on to market share in roaring market Global sales in millions of units Units'98 share Units'99 share 98/99 % grow 1. Nokia 41 25% 81 31% 98% 2. Motorola 32 20% 42 16% 31% 3. Ericsson 23 14% 32 12% 39% 4. Panasonic 12 7% 17 7% 42% 5. Samsung 7 4% 13 5% 86% 6. Alcatel 7 4% 11 4% 57% 7. Siemens 4 2% 11 4% 175% 8. Qualcomm/Sony 6 4% 10 4% 67% 9. Other 31 19% 41 16% 32% Total 163 -- 258 -- 58% Source: IC Inights