S&P sees solid mobile-phone outlook

October 19, 2005

Standard & Poor's said Wednesday most cell-phone manufacturers worldwide have a stable outlook for next year despite increased competition.

In its latest report on the industry, the credit-rating agency said expanded operations and innovations, coupled with cost reductions, will be able to offset the pressures of more rivalry among companies.

"We expect major phone and component suppliers to retain sufficiently strong positions in their respective markets, so that ratings will not seriously be stressed under anticipated industry conditions over the intermediate term," credit analyst Joshua Davis said in a news release.

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