ZTE sees phone part prices rising after Japan quake
ORLANDO | Thu Mar 24, 2011 10:39am EDT
(Reuters) - China's ZTE Corp (0763.HK) is seeing higher prices for phone parts such as batteries, displays and radio filters due to supply shortages in the aftermath of the Japan earthquake.
More than a week after the quake, manufacturers in Japan, key producers of components used in many phone parts, are struggling to get back up to speed as factories grapple with power cuts and a crippled infrastructure.
"We already see some of the component prices going up because of tightened supply," Cheng said in an interview on the sidelines of the CTIA wireless show here this week.
He declined to estimate how much prices had climbed.
ZTE has avoided delays to shipments for its current orders, according to Cheng, by working with alternative suppliers in countries such as Korea, China and Taiwan.
He said it was too soon to predict the impact on his company's profits.
"We expect the situation will stabilize in three to six months," Cheng said.
(Reporting by Sinead Carew; Editing by Lisa Von Ahn)
Credit: Reuters (www.reuters.com)
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