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07/21/2010

Cell Phones: Production, Exportation and Importation

This page: Cell Phones production in Brazil.

Cell Phones Production in 2010

Cell phone production in Brazil decreased 11.9% in May/10 if compared with May/09. The growth in April, March and February can't be faced as positive, once the numbers for comparison are also very low. The production along these months in 2009 were about 40% lower than in 2008. In this growth pace, cell phone production in Brazil in 2010 won't reach the same level of 2008, remaining near the 2009's level.

Growth in comparison with the same period of the previous year
Period	2010	2009
May	-11.9%	-29.3%
April	10.1%	-44.9%
March	6.3%	-40.8%
February	6.6%	- 49.1%
January	59.7%	- 63.8%

The cell phone production in Brazil presented growth of 59.7% in Jan/07 when compared with Jan/09. By this growth the production gets near to the levels observed in Jan/08. The production of Jan/09 was 63.8% lower than in Jan/08.

The year starts with good perspectives indicating that the negative growth observed in 2009 won't be repeated.

Cell Phones Production in Brazil

Millions of units	2003	2004	2005	2006	2007	2008	2009
Production(1)	29.3	42.9	64.3	61.7	68.4	73.0*	62.0*
Sold Production(1)	27.3	41.7	63.4	58.6	66.2	70.7**	60.0**
Exportation(2)	11.3	8.9	32.9	32.0	22.0	23.9	15.8
Importation(2)	1.4	1.3	4.5	3.0	3.9	6.2	3.3
Sale in Brazil(3)	17.4	34.1	35.0	29.6	48.2	52.9**	47.5**

*Values writen in blue are estimations

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

Cell phone production in 2009

ABINEE's Projection for production in 2009

The cell phone production estimated for 2009 reaches 62 million devices, 17 million of them will be exported and 45 million will be remain in the Brazialian market. From these 45 million, 24.4 million will receive new lines.

We can highlight the 32% retration in exportations, in units, of cell phones, in 2009, in comparison with 2008. This fall resulted from administrative policies in Argentina, venezuela and Ecuador, in order to reduce importations.

Source: ABINEE

The cell phone production in Brazil in the 1st semester of 2009 was 41.2% lower than in the same period of 2008. In 3Q09 this percentage reached -8.6%.

Despite the result of Oct/09, the trend points out to recovery in cell phone orders from operators and recovery from the global financial crisis.

Growth in comparison to the period of 2008
Period	Growth
Nov09/Nov08	-12.2%
Oct09/Oct08	-12.3%
Sep09/Sep08	-8.5%
Aug09/Aug08	0.8%
Jul09/Jul08	-17.6%
Jun09/Jun08	-27.0%
May09/May08	-29.3%
Apr09/Apr08	-44.9%
Mar09/Mar08	-40.8%
Feb09/Feb08	- 49.1%
Jan09/Jan08	- 63.8%

Cell phone production in 2008

The cell phone production in Dec/08 was 60.3% smaller than Dec/07, a sign of the first effects of the global financial crisis in Brazil.

In the first semester of 2008, cell phone production was 28.5% bigger than in the first semester of 2007.

Growth compared to the same period of 2007

Period	Growth
Dec08/Dez07	-60.3%
Nov08/Nov07	-4.6%
Oct08/Oct07	12.2%
Aug08/Aug07	-11.4%
1º Sem08/1º Sem07	28.5%
Feb08/Feb07	31.4%
Jan08/Jan07	25.2%

Source: Monthly Industrial Research of IBGE.

In Amazonas, the accumulated production of electronic communication equipments increased 2.7% in comparison with 2007, the highlight were mobile telephony equipments.

In the State of São Paulo, the accumulated production of electronic and communication equipments in the period from January to July increased 24.9% in comparison with the same period of 2007, mainly in equipments for mobile telephony. In the third quarter of 2008, the growth was 3.6% if compared with the same period of 2007.

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

Cell Phones production in 2007

As IBGE estimated in 2% the growth of cellular production in 2007 when compared with 2006, It's possible to estimate that the sales prediction in 2007 was 62.9 million and sales for domestic market of 44.9 million.

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.

Prediction of Cell Phones Production in 2006

IBGE released in June/08 the production and sales of cell phones in Brazil in 2006, based on information from 9 producers to a Industrial Research - product - 2006.

	Producers
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

Thousands	2007	2008	2009	Accumulated (Jan-May/10)	Accumulated (Jan-May/09)
Quantity produced	17,676	21,803	17,649	6,792	6,320

US$ Millions	2007	2008	2009	Accumulated (Jan-May/10)	Accumulated (Jan-May/09)
Brazil	1,346	1,510	1,039	413	344
Abroad	300	434	328	157	101
Total	1,647	1,944	1,367	570	446

Thousands	2007	2008	2009	Accumulated (Jan-May/10)	Accumulated (Jan-May/09)
Brazil	13,734	16,024	13,730	5,303	4,900
Abroad	3,724	5,168	3,825	1,840	1,576
Total	17,459	21,192	17,555	7,143	6,476