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World's Mobile Phone Production in 2001 Faces Significant Slowdown: Survey
Posted: 09-May-2001 [Source: Nikkei Market Access]

[Manufacturers expecting recovery in handset market in the second half of 2001 with accelerated introduction of GPRS.]

by Ken Nakamura -- "Global production of mobile phones in 2000 was 427.12 million units, up 54 percent from the previous year, Nikkei Market Access reported recently.

"This proved sustained high growth in production, though not as favorable as the 77 percent recorded in 1999.

"For 2001, however, Nikkei Market Access predicted the production of 471.32 million units, or a 10 percent growth rate, from the previous year. A further decline may be reported if the economy breaks down in the U.S. and European markets.

"At the beginning of 2000, large demand for mobile phones was expected to reach 600 million units, and there were serious shortages in component parts. But the situation developed unexpectedly in the summer of 2000. The overproduction and slackened demand in these markets forced manufacturers to adjust inventory. Compared with the same quarter a year ago, the first quarter of 2000 enjoyed a high growth rate of 71 percent. Then the figure dropped to 62 percent, 54 percent, and finally to 38 percent or 117.54 million units.

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