teleco.com.br

This result is an indicator that demand remains heated in Brazil, since the number of cell phones exported in Jan/08 was 12% lower than the export in Jan/07. The exported in Feb/08 was 9% lower than the export in Feb/07.

Despite the IBGE monthly industrial research has not produced information regarding the growth of production of cell phones in March and April 2008, it says that the capital equipment for transportation grew 29.0% in comparison Jan-Mar/08 with Jan-Mar/07, influenced by the increased production of items associated with cellular telephony.

ABINEE estimated that the production of cell phones should reach 78 million units in 2008, with a growth of 18% compared to 2007. This production will be 30 million units for the foreign market, (estimate made in Jan/08).

Cell Phones Production in 2007

The production of cell phones in 2007 was 2% bigger than 2006 according to IBGE.

Growth comparing to the same period of 2006

4Q07/4Q06	6.4%
Nov07/Nov06	-0.4%
3Q07/3Q06	13.2%
Aug07/Aug06	20.6%
Jul07/Jul06	15.9%
1st Sem 07/1st Sem 06	-6.2%
2Q07/2Q06	-3.5%
1Q07/1Q06	-8.9%

Source: IBGE monthly industry research

This result is an indicator in which the demand remains heated in Brazil, since the quantity of cell phones exported in Jan/08 was 12% lower than the exported in Jan/07. The exported in Feb/08 was 9% lower than the exported in Feb/07.

Cell Phones production in 2007

After beggining the year with low growth, the production of cell phones in Brazil's been growing since the end of the 1st semester and surpassed 2006 in 2%.

The production of cell phones in the Zona Franca de Manaus decreased 35.7% in 2007.

O IBGE will publish the production of 2006 in 2008 and 2007 in 2009.

Cell Phones Production in Brazil

Millions of units	2003	2004	2005	2006	2007
Production(1)	29,321	42,910	64,285	-	-
Sold Production(1)	27,336	41,696	63,367	-	67,300
Exportation(2)	11,268	8,871	32,882	32,043	22,028
Importation(2)	1,365	1,289	4,542	3,060	3,946
Brazil's sale (3)	17,432	34,114	35,027	-	49,200

Source: (1) IBGE PIA; (2) MDIC; (3) Teleco

Prediction of Cell Phones Production in 2006

Teleco's prediction:

In 2006 were produced around 66 million cell phones in Brazil and cell phones sale in brazilian market 37 millions.
In 2007 were produced around 67.3 million cell phones (growth of 2%) and cell phones sale in the brazilian market would be 49.2 milions.

IBGE will publish the production of 2006 in 2008 and 2007 in 2009.

Places of Cell Phones Production in Brazil

Cell Phones industries in Brazil are located in Zona Franca de Manaus and São Paulo

	Vendors
Amazonas (Zona Franca de Manaus)	Nokia, Samsung, Siemens (BenQ), Gradiente, Vitelcom and Evadin
São Paulo	Motorola, Sony Ericsson, LG, Samsung, Telemática (Venko), Kyocera and Huawei

Cell Phones (Zona Franca de Manaus)

Quantity produced