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Electronics Production | January 12, 2006

Cell phone makers face falling revenues

A tough year awaits the mobile handset industry as global revenues are expected to decline in 2006 despite a small increase in unit shipments, a survey found on Wednesday.
The average wholesale price of a mobile phone, the price paid to the manufacturer, will slip to $129 in 2006, a 9 percent drop from $142 in 2005, market research group iSuppli said.

The global mobile phone market is expected to rise to a staggering 850 million units, roughly double 2002's level and up 5 percent from the 810 million shipped last year.

This compares to a television set market of 200 million units a year, with handsets the single biggest consumer electronics category in the world.

But this year's shipment increase is not enough to offset the price decline, the research group said. As a result, total revenues will slip to $109.7 billion in 2006 from $115.1 billion in 2005.

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