01.11.2001
GPRS leading stronger handset demand

GVC Corp. (2322 ‘Zhi Fu’) and Acer Peripherals Inc. (2352 ‘Ming Ji’) expect strong shipment of handsets later this year after the installation of the GPRS network system begins in 1Q01. GVC Corp. expects to produce 15m handset units, twice as much as 2000, on the back of new orders and a smooth supply of raw materials. We are cautious about the tapering outsourcing contract tender prices, with concern that handsets contract prices may decline as PC industry contract prices have previously.
Benny Lo