CELLULAR PHONE MANIA SWEEPS THE GLOBE, SAYS IC INSIGHTS

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CELLULAR PHONE MANIA SWEEPS THE GLOBE, SAYS IC INSIGHTS
31 October 2006 - Indium Corporation

A mania continues to sweep around the globe in 2006, a cellular phone mania. Although the computer market is still by far the leading consumer of ICs and is forecast to represent 47% of the 2006 IC market, the electronic system type driving most of the IC market growth this year is cellular phones.

Figure 1 shows IC Insights' forecast for the worldwide cellular phone subscriber base through 2007. As shown, three billion subscribers are expected to be in place by the end of next year! This amazing figure would represent about 45% of the world's population of 6.6 billion in 2007!

Historically, forecasts for the number of cellular phone subscribers have always underestimated actual results. While three billion cell phone subscribers appears to be an aggressive figure, IC Insights' forecast for the 2007/2006 subscriber base increase is only 14%. Given that the annual increase for cellular subscribers has never been less than 20%, this forecast may still turn out to be conservative!

In 2006, IC Insights forecasts 965 million cellular handsets will be sold, an increase of 20% over 2005! Moreover, it would take a handset growth rate of only 3.6% to push worldwide cellular phone sales over the one-billion-unit level in 2007!

While much is talked about regarding an increase in cheap cellular phones for the emerging markets (e.g., India), cellular handset ASP is forecast to decline only 4% in 2006 (to $130), the same rate of decline as in 2005. With a large percentage of cellular phones being shipped as upgrades to existing subscribers (over 50% in 2006), the demand for high-end cellular phones is keeping the overall decline in handset ASP very moderate.

The cellular phone industry is expected to be one of the most important, if not the most important, future IC market drivers. In IC Insights' opinion, the long-term market potential from interconnecting more than half of the world's population to cellular networks (probably shortly after 2007) is staggering. Overall, this segment of the communications market promises to be a very strong source of future demand for the IC industry.

The chart relating to the cellular phone industry included in this news release is only a sample of the more than 300 figures that will be contained in the new 2007 edition of IC Insights' IC Market Drivers report. This completely revised report is scheduled to be released in November.

Details about IC Insights' market forecast for 2007 and beyond will be presented at the market research firm's annual Fall IC Industry Forum on Thursday, September 21, at the Radisson Inn Sunnyvale in California. To attend the event, IC Insights clients pay just $195; others, $295. For more information, call +1-480-348-1133 or visit http://www.icinsights.com/events/fallforum/fallforum.html

http://www.indium.com

About: Indium Corporation
Indium Corporation is a three-time Frost & Sullivan Award-winning supplier of electronics assembly materials, including solder pastes, solder preforms, fluxes, Pb-Free solder alloys, underfill materials, die-attach materials, and more. The company is also the world’s premiere supplier of commercial grade and high-purity indium. Factories are located in North America, Europe, and Asia.

Founded in 1934, the Indium Corporation attributes its continued success to several intrinsic and distinguishing characteristics:

a genuine desire to excel at solution-based customer service
flexibility that enables on-need delivery of large or small quantities of standard, complex, and custom products
a strong commitment to quality
an ability to attract and retain experienced professionals
an outstanding record of productive investments in technology

Indium is proud of its many award-winning people. We lead the industry with the largest team of SMTA Certified Technical Support personnel. Our staff is frequently tapped to chair technical sessions at regional and international exhibitions.

Our technical contributions often lead to award-winning technical papers and presentations.

Indium Corporation leads the industry on many fronts. We are “The original Pb-Free solder company™” and lead in the effort to eliminate the use of Pb in electronics assembly. Our Pb-Free QuickStart™ program, a partnership with Motorola, has been recognized worldwide.

And our numerous consistent achievements in customer service and product development have resulted in the Indium Corporation being named to the Frost & Sullivan Hall of Fame.

Indium Corporation manufactures over 220 alloys with melting temperatures ranging from 10°C to 450°C, in many forms, including:

Solder Paste
Solder Preforms
Solder Spheres
Solder wire
Solder ribbon
Solder foil
We also manufacture many fabricated products.

And, of course, the Indium Corporation is the world’s leading refiner, producer, and fabricator of indium and indium chemicals.

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