02.19.2001
Disappointing results for handset makers

• Taiwan handset manufacturers reported disappointing shipment numbers in Jan. 2001, mainly due to clients' inventory problems. We expect the situation to persist through 1Q01, with new orders to come in 2Q01.

• Acer Communications (2352 'Ming Ji') reported shipment of only 150k units in January, down 57% compared to monthly shipments in 2Q00 and 4Q00. The poor performance was mainly due to delay in shipment to Motorola's Europe division. Shipment was originally slated for December 2000; we expect to see shipment in March, at 400k units per month.

• DbTel (5304 'Da Ba') reported revenue of NT$200m in January, without declaring shipment volume. DbTel has not received any new outsourcing contracts from Motorola since November last year. The company expects more shipment from February on the launch of its own brand cell phone in China and Taiwan and on sales of Motorola's new handsets in March. We have reservations about the success of DbTel's own brand handsets in China.

BennyLo@Primasia.com +886-[0]2-2547-8869