Zeev's Turnips Patch-No Politics (ZEEV)

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07:17 Mobile phone revenues set to decline in 2006, says iSuppli - Digitimes

Digitimes reports worldwide factory revenues from production of mobile phones will decline to US$109.7 billion in 2006, down 4.7% from an historic high of US$115.1 billion in 2005, and will climb in subsequent years, but only by single-digit percentages, according to iSuppli. By 2009, revenue will recover back to its 2005 level of US$115.1 billion, stated the research firm. After rising by 30% in 2003, 25.1% in 2004 and 13.6% in 2005, global mobile-phone unit production growth will decelerate to only 4.9% in 2006, rising to 850 million units, up from 810 million in 2005, reports the research firm. The global mobile-phone average selling price (ASP) is expected to decline to US$129 in 2006, down 9.2% from US$142 in 2005, said iSuppli, adding that this follows a fall of 8.5% in 2005 from US$155 in 2004, a contrast to the mild 2.7% decrease seen in 2004. However, ASP erosion will settle down in 2007, with the average price declining to US$128, down only 1% from 2006, iSuppli predicts, adding that pricing will decline by a mere half a percent in 2008 and 2009.