Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: Terrapin who wrote (1382)	3/28/2000 12:05:00 PM
From: tero kuittinen	Read Replies (2) \| Respond to of 1418

Well - there are two Finnish companies embarked on aggressive international expansion; Eimo and Perlos. But I think they are currently concentrating on European markets; Hungary is a hotspot of mobile manufacturing, thanks to Nokia's production facilities there. Contractors are building their own plants there as well. I don't think there's anything that sets GSM apart from standards like CDMA, TDMA and PDC in this industry from the manufacturing POV; though right now mobile internet phones are often initially launched in GSM markets. Nokia's 7110 with the Navi-Roller feature was launched in January and should sell 10 million units in the GSM format this year. I think that AT&T is launching the TDMA version this spring, but I doubt that the shipments will be more than maybe 20-30% of the GSM sales. Many value-added mobile handsets (like Ericsson's T28 and Motorola's V-series) are launched first in GSM markets in Asia and Europe. The North American digital versions follow 6-18 months later. So in many cases, the contracts for manufacturing these models are placed for the first-wave GSM models. Since Motorola, Nokia and Ericsson seem to launch the CDMA, TDMA and GSM-1900 models in USA after that time lag, Nordic molding experts seem to think they have a R&D edge. Eimo and Perlos started specializing in exchangeable covers back when 5110 was launched in Europe in the spring of 1998 - they're now doing covers for the 8210, which is the first 3 ounce model featuring custom covers. Again, the 8200 series is not shipping in North America, though it's a big hit in Asia. So I think that having either European or Asian base is very important for companies competing in this space. China would seem to be a very good choice - they're exporting mobile phones to other Asian countries from there, and the domestic GSM subscriber base should top 40 million this summer. Tero

To: Terrapin who wrote (1382)	3/28/2000 5:43:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Terrapin, I recently was reading an article on the growth of mobile phones. It stated that the highest growth on a percentage basis would be in Southeast Asia, mainly China, due to the lack of, poor quality, or outdated landlines systems. I suspect Deswell's customer will manufacturer for export, but is looking at the regional opportunities long term. I thought it a strange thing to put in the PR, but Mr. Lau states "we believe our productions cost is only about 40% of our competitors". That's a major advantage, more than enough to justify shipping costs into other markets. I doubt that anyone has an advantage on quality. Deswell is operating with the most modern, 'state of the art' mold design software, mold making machines, and presses. I didn't realize the mobile phones were that difficult to make. I suppose it's because there's so much technology put into such a small package that has to be very durable. FWIW, Ron