World Cell Phone Demand to Exceed 1B Units in 2008, JEITA

Worldwide cellular phone demand is expected to exceed 1 billion units in 2008, increasing by 36% from 780 million units in 2005, announced Japan Electronics and Information Technology Industries Association on Wednesday. Third generation (3G) cell phone demand is estimated to increase to 290 million units in 2008 or 3.6 times of 80 million units in 2005.

Worldwide cell phone demand will grow most in Asian market. The demand in the region is forecasted to increase by 16.2% to 430 million units in 2008 from 370 million units in 2006. Asian demand would account for 39% of world market with 7.8% of annual growth rate toward 2008 when cell phone demand expands especially in China and India.

Cell phone demand is estimated to increase slightly from 110 million units in 2006 to 120 million units in 2008 in USA and to keep flat at 150 million units in Europe. Volume growth is slow but replacement demand for 3G phone is expected in these areas.

The demand would stay at 90-100 million units toward 2008 in Latin America after cell phone subscribers sharply increased in the area by 2005. The subscribers are also increasing rapidly in Central and Eastern Europe, especially in Russia and Ukraine, and cell phone coverage will become as high as Western Europe. The demand would increase from 70 million units in 2006 to 90 million units in 2008 in Middle and Near East and Africa.