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Mobile-phone shipments to increase through year’s end

EL SEGUNDO, Calif.-Mobile-phone unit production is expected to increase sequentially during the second quarter and for the rest of this year following a predictable seasonal slowdown during the first quarter, said iSuppli Corp., a market research company.

In the first quarter of this year, mobile-phone production stood at 173 million units, down 13 percent from 200 million units during the fourth quarter of last year. Year-over-year, production was up 2.4 percent during the first quarter from 169.5 million units last year, said iSuppli.

During the second quarter, production is expected to reach 180.5 million units, up 4 percent from the first quarter and 7.1 percent from the same period a year ago. Third-quarter shipments are expected to increase 5.3 percent sequentially to 190 million, and fourth-quarter shipments are expected to reach 206 million, an increase of 8.4 percent.

Mobile-phone unit production, however, should taper off this year after rising 25 percent last year. For the year, production should reach 750 million units, compared with 713 million units last year.

Some regions, including China and India, continue to show strong subscriber growth, but mobile-phone shipments this year and in years to come increasingly will be driven by replacement and upgrade sales, said the firm.

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