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 : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: voop who wrote (12439)	7/3/2001 11:29:04 PM
From: voop	Respond to of 196628

Korea and Japan Going Head to Head in Global Mobile Communication Market By Lee, Eun-yong Wednesday, July 04, 2001 Competition between Korea and Japan is heating up in the global mobile communication market. Until now Japanese companies have had the upper hand but with China and South America opting for CDMA Korea is gaining weight and Korean companies are poised to make dramatic progress. This comes in the wake of European companies such as Ericsson, Siemens, Alcatel, etc. losing market dominance and many parties are watching with keen interest. Last 1Q the global mobile phone market recorded total sales of 96.7million units and of the top 10 companies in the world there were 6 Korean and Japanese companies. From Japan Panasonic, NEC, Mitsubishi, Kyocera together sold 13.1million units while Samsung Electronics and LG Electronics together sold 8.8million units, the two countries' companies accounting for 22.7% of the entire market. During 3Q00 Korean and Japanese companies combined sold a total of 20.6million units which was 19.9% of market share, while during 4Q00 together they sold 25.9million units which was 20.6% of market share, thus showing a steady gain in market share. As a result the global mobile communication equipment market is changing shape with Nokia still the leader with 35.3%, Motorola-Ericsson-Siemens with 26.9%, Korean-Japanese companies with 22.7% of market share. Round 1, Japan wins: Japan has a great source of demand from their own country with customers hungry for new products leading to a stable growth pattern. Aside from the four companies that made the top 10 list for sales, namely Panasonic, NEC, Mitsubishi, and Kyocera, Sony and Toshiba also recorded 7-8million units in sales. Unlike Korea where the market virtually begins and ends with Samsung Electronics, the Japanese industry is wider and sturdier. Round 2, Korea's rebound: Starting 1Q01 Korean companies are making significant progress. Since 2Q00 Samsung Electronics has been closely tracking Panasonic's sales, which has the highest sales and finally in 1Q01 sold some 6.12million units and overtook Panasonic in sales volume. Panasonic only sold 4.5million units in 1Q01. Also, LG Electronics overtook Kyocera by selling 2.7million units while Kyocera sold 2.4million units. Round 3, Competition on thin ice: The new entity to emerge this October, Sony Ericsson Mobile Communications, is the eye of the storm. Sony Ericsson will immediately emerge with an annual sales volume of 50million (Ericsson's 41.5million + Sony's 7million) already materializing the synergy effect. Sony Ericsson basically stated it is after the number one spot. Medium sized Korean companies such as Pantech, Sewon, Maxon Telecom, and Telson can all be expected to give their competitors a run for their money. In particular Pantech has an agreement to supply Motorola with 10million units while Telson is also going to supply to Nokia. Nokia and Motorola overshadow the sales volume of these two companies, but this activity shows that Korean-made communication equipment sales volume will soon be one of the highest in the world. Sewon and Maxon Telecom also plan to record sales volumes of over 10million units. Finally, this year will be the turning point as the leader of CDMA equipment sales will also be well poised to come out on top from the competition between Korea and Japan. etienglish.com