To: limtex who wrote (13824 ) 8/17/1998 8:29:00 AM From: John Carragher Respond to of 152472
Qualcomm Inc. The Wall Street Journal -- August 17, 1998 Technology: U.S. Cell-Phone Users Favor Digital Service; Ericsson Leads Makers SAN JOSE, Calif. -- U.S. cellular-phone users increasingly favor digital service, and Telefon AB L.M. Ericsson of Sweden was the leading maker of digital handsets last year, market researcher Dataquest reports. Dataquest said shipments of digital cellular phones nearly quadrupled last year from 1996, to 5.6 million, and are expected to more than double this year. Roughly half the cellular phones sold this year will be digital, Dataquest senior analyst Matt Hoffman said, compared with 26% last year and 9% in 1996. Ericsson remained the leading vendor last year, with 41% of the market, followed by Nokia Corp. at 20% and Qualcomm Inc. at 17%, Dataquest said. Mr. Hoffman said Ericsson's lead is in jeopardy because it doesn't make a phone for one of the three competing types of digital-cellular service available in the U.S. Only Nokia makes phones for all three types of service, although Motorola Inc. says it will do so by year end. Among the digital services, the fastestgrowing last year was CDMA, or code division multiple access, Mr. Hoffman said. Roughly one-third of digital cellular phones shipped last year used CDMA, compared with 3% in 1996, he said. By 2002, Dataquest expects CDMA phones to account for slightly more than half of the U.S. digital market. This is the type of digital phone Ericsson currently doesn't offer. "The defining characteristic for a successful handset manufacturer going forward is going to be having a complete product line of all digital technologies," Mr. Hoffman said. Although the service provider is still the most important factor in consumer choices about cellular service, Mr. Hoffman said, handset brand is becoming increasingly significant. More about Qualcomm Inc.: From leading business publications From The Wall Street Journal Powered by Quote Agentr and News Agentr from IDD Information Services Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.