Mobile Handset Market Still Robust, Low Priced Smartphone and PC OEMs Entrance Force Hyper-Competition

The global handset market started its rebound in 4Q 2009 with strong, robust market growth. Worldwide handset shipments hit a grand total of three hundred and three million in 1Q 2010, achieving a mid-double-digit growth compared to the same period just one year ago. The blended ASP (Average Selling Price) for global handsets increased slightly from 4Q 09, with 0.5% growth, but decreased 3.2% Year-on-Year. The wholesale ASP for WCDMA handsets was up 1.4% compared to 4Q 09, and CDMA2000 and GSM handset wholesale ASP increased 0.7% and 0.6% respectively.

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