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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (35067)	6/16/2003 7:52:54 AM
From: John Carragher	Respond to of 74559

more recent article says glut sell out and big jump in cell phone sales the rest of this year... Sars no longer an issue. Mobile Phone Shipments to China Pick Up By Kim Ik-jong Sunday, June 15, 2003 Mobile phone exports to China, which were hit hard by the impact of SARS, or severe acute respiratory syndrome, are picking up again. Shipments to China, the world's largest mobile phone market, as well as North America have begun to increase, brightening the outlook for the second half. According to the industry on June 13, leading mobile phone manufacturers such as Samsung Electronics, LG Electronics, Pantech and Telson Electronics now forecast exports to China to rise 10 to 70% over the previous month as the SARS fears are muted down and demand returns to seasonal trends. "We expect inventories will dry up in the third quarter centering on voice phones and demand for data and multimedia-enabled cdma200 1x and GPRS phones rises, boosting shipments to China," said Han Nam-soo, CEO of Telson Electronics. Samsung Electronics estimates that CDMA handset exports to China will rise 10 to 20% this month over the previous month. This is the first time that monthly shipments increase since it cut volumes of CDMA handsets in April due to a glut in China. "SARS has slowed down and consumer sentiment is recovering," said an official at the company. "The mobile phone market is expected to get back on track in the second half, with the largest CDMA operator China Unicom providing subsidies." LG Electronics now sees mobile phone sales in China increasing in line with resumption of local marketing, which was put on hold due to SARS. "We re-launched promotional events two weeks ago, showcasing new releases at shopping centers in Guangzhou and Shenzen," said Park Hyung-il, manager at the company. "We expect mobile phone sales in China to rise 10 to 20% this month at 220,000 to 240,000 units." Pantech, which is heavily dependent on China, also estimates that shipments to China will increase 60 to 70% this month. "We will be able to send some 330,000 to 350,000 units of mobile phones this month, up 60 to 70% from last month," said Roh Soon-seok, managing director at the company. "Once shipments to China get on track in the third quarter (July through September), exports will likely reach a record high in the fourth quarter." Other manufacturers such as Telson Electronics and Sewon Telecom have also begun to increase shipment volumes to China, seeing a pickup in seasonal demand. Meantime, mobile phone shipments to China in May fell about 40% from a year ago down to $30 million, sending total mobile phone exports down 4.5% over the previous month. etienglish.com.