FRAMINGHAM, MA - Following a record quarter of worldwide shipments, the mobile phone market slowed slightly in the first quarter due to expected seasonality. According to IDC, worldwide mobile phone shipments totaled 174.3 million units in 1Q05, falling 12.6% from the fourth quarter but increasing 9.2% year over year.
Nokia maintained its no. 1 position
with a 30.9% share despite enduring the
largest sequential decrease in shipments. Motorola once
again captured second place with further penetration into Europe and
leadership in the Americas. Samsung, the only company among the leading
vendors to post a sequential gain, locked up third place and regained
its momentum to catch up with Motorola after experiencing declining
shipments in 2004.
Holding in fourth place is LG Electronics, marking the company's third consecutive quarter of shipments greater than ten million. Sony Ericsson beat out Siemens for fifth place by just 100,000 units.
"Most vendors have increased their shipment levels from a year ago, showing that despite a slight downturn from the previous quarter, consumer demand is still strong and vendors are prepared to meet that demand with a broad selection of phones," said Ramon Llamas, research analyst for IDC's Mobility Group. "Vendors have been stretching the limits on what phones can do and what they are supposed to look like. Telephony is still at the core of the mobile phone, but now it can be wrapped with features to satisfy different consumer tastes. What were once considered high-end features are now standard on many low-cost phones as vendors battle to gain market share and consumer attention."
Vendor Highlights | more |
Top 5 Vendors, Worldwide Mobile Phone Shipments and Market share, 1Q 2005 (Preliminary) | more |
Rank | Vendor | 1Q 2005 Shipments | 1Q 2005 Market share |
1 | Nokia | 53,800,000 | 30.9% |
2 | Motorola | 28,700,000 | 16.5% |
3 | Samsung | 24,500,000 | 14.1% |
4 | LG Electronics | 11,100,000 | 6.4% |
5 | Sony Ericsson | 9,400,000 | 5.4% |
Others | 46,800,000 | 26.9% | |
Total | 174,300,000 | 100.0% |
Source: IDC, April 27, 2005
FRAMINGHAM, MA
- The consumer semiconductor market will more than double between 2004 and
2009, expanding from just over $14 billion to almost $30 billion, a new IDC
study predicts. The market will experience the fastest year-over-year growth
rates through 2007.
Consumer semiconductor growth is fueled by increasing
importance in existing and developing end-products in the "digital home"
environment. Consumer semiconductors are the enablers of both the underlying
technology and the consumer-facing features of the digital home.
"The consumer semiconductor market is one of the fastest growing and most challenging segments in the semiconductor industry," said IdaRose Sylvester, senior research analyst at IDC. "With opportunity comes significant technological, market and competitive challenges, and only the most strategically-focused semiconductors vendors are going to benefit substantially from this growth."
The consumer semiconductor landscape is on the verge of dramatic evolution. Some markets such as digital TV represent great growth and potential for new entrants, but other markets, such as DVD offer moderate expansion and exceptional challenges. Due to these forces, the market in 2009 will be dramatically different than it is today.
NEWARK, NY -- IEC Electronics, a publicly held EMS firm,
today reported second quarter net income of $73,000 on sales of $4.7 million.
For the quarter ended April 1, sales dropped 36% year-on-year, due to a decline in orders from two major customers. Net income dropped from $124,000 last year.
In a press statement, chairman and CEO W. Barry Gilbert said, "The business has been restructured delivering solid gross
profits and excellent inventory turns even though our sales reflect
the previously reported loss of Motorola and Teradyne, which
historically were a majority of the company's business."
IEC has cut $1.5 million annually from its overhead during the past
six months, Gilbert added.
The company landed two new accounts that are eventually expected to be worth $6 million to $10
million annually in sales.
Another customer
said it would cease its business with IEC in July and bring its work in-house.
The top five customers accounted for 71% of sales for the quarter, down five points from last year.
For the quarter, IEC took restructuring costs of $41,000.
Revenue rose 20.1% to $305.5 million from $254.3 million last
year. The results beat analysts' consensus of $285 million in sales.
Plexus reported a net profit of $3.5 million a year ago.
Dean Foate, president and CEO, said, "Looking ahead, we remain confident about attaining revenue for the full fiscal year near the high end of our previously announced target range of 15 to 18%, despite the unsettled outlook for key end markets."
Plexus guided for third-quarter revenue of $305 million to
$315 million, and forecasts operating earnings per share of 13 cents to
15 cents.
The company said its bottom line in the fourth quarter should continue to benefit from operational improvements, which will include advancing the new facility in Penang, Malaysia, to a modest profit.
SAN FRANCISCO - Fabrinet,
an engineering and electromechanical manufacturing services company, will
purchase the manufacturing facilities located in Fuzhou, China,
from JDS Uniphase.
The deal is expected to be completed by June 30. Terms were not revealed.
Last week, JDS said it would transfer its Ewing and Mountain Lakes, NJ,
manufacturing facilities to Fabrinet. JDS has contracted assembly work to
Fabrinet since 2000.
The Fuzhou deal includes the 225,000 sq. ft. Fuzhou
plant, which makes optical components, and its 500 employees. Fuzhou port
sits at the mouth of the Minjiang River in South China.
Last December, Fabrinet acquired JDS Uniphase's manufacturing facilities in Singapore and Bintan, Indonesia.