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Cell Phones: Color Them Booming
Posted: 11-Apr-2004 [Source: Business Week Online]

[Analyst estimates cell phone market to grow 12% in 2004 with replacement handset buying driving growth as consumers continue to upgrade to new color handsets.]

By Ari Bensinger -- "Nokia shocked the market on Apr. 6 by warning that in the first quarter unit volumes for its handsets grew only 19%, underperforming the overall market. In an uncharacteristic misstep, Nokia experienced certain gaps in its product portfolio, mainly in the mid-level price range."

This year, something smells different to us. In early February, there were rumblings that the strong handset demand felt during the fourth quarter of 2003 was refusing to let up, with no sign of an inventory build. Korean handset maker LG Electronics posted robust January handset-unit numbers, while rivals Samsung and Siemens (SI ; $75.76) issued guidance for better-than-normal first-quarter handset sales."


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