An analyst with SG Cowen Securities Corp., Matthew Hoffman has said that soon US will face a shortage of mobile handsets. Well the main reason of the shortage would be short supply of LCDs.
EE Times reported that not hundreds and thousands but US will face shortage of millions of handsets. There will be more demand than supply of mobile sets.
”We have confirmed with multiple contacts at the distributor and handset OEM level that key U.S. operators are now scrambling to procure enough handsets to meet expected demand in the U.S. for 4Q07,” Hoffman said.
”We expect this sudden change in the environment — from excess to shortage, especially in GSM — will be positive for handset pricing and unit sales in the short term,” he added further.
The analyst added that there are various reasons for the shortfall. ”There are conflicting stories about the reason for the tightening of supply — one contact pointed to an issue with LCD supply — but the problem seems to be most acute in the GSM channels, especially T-Mobile USA for 4Q ’07. AT&T handset sales remain up double-digits quarter over quarter,” said Hoffman.
According to Mobilewhack.com, the demand of mobile phones is increasing day by day specially in the Europe, China, India and the US. In the third quarter nearly 292 million were sold globally. If the demand continues, it is difficult to stop upcoming shortage in US.
