2Q.08 United States Handset Vendor and Technology Forecasts

IEMR' s United States Handset Vendor and Technology Forecast provides historical and forecasted (2004 - 2011) information on handset shipments by unit shipments, air interface, generation, and form factor in the United States market. Vendors with complete coverage include: Nokia, Motorola, Samsung, LG, and Sony-Ericsson.

• Unit shipments into the United States are expected to rise from 183 million units in 2008 to 202 million in 2011. The biggest story as far as unit shipments are concerned is that we are expecting that shipments of converged mobile devices in the United States will increase from 25.6 million in 2008 to 44.4 million in 2011, an increase of 74% over the forecast period.
• We expect 33% of the 202 million shipments that will take place in 2011 to be 3G handsets.
• While Motorola continues to have the largest market share in the United States, we think that Motorola' s handset pipeline is weak. Over 2006 - 07, LG performed quite well in the United States 3G handset market. While LG' s overall market share by shipments was 15% in 2006 in the United States, its 3G handset market share was was 34.2% (8.5 million 3G handsets). We expect both LG and Samsung to make in-roads into Motorola' s territory in the U.S. market.

IEMR' s Handset Forecasts are based on our proprietary, vendor-specific forecasting models. These models deploy multiple regression analysis and cross-impact matrices that estimate relationships between subscriber data, technology use and deployment data, overall economic and demographic changes expected in a particular region; and relate these to company operational and financial metrics.