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August Handset Demand “Lackluster,” Pacific Crest Says

September 2, 2008
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

U.S. and European handset demand was “lackluster” in August, creating pressure on pricing, Pacific Crest’s James Faucette asserted in a research note this morning.

Faucette says says handset sell-through is up sequentially from July, but below expectations for the beginning of the back-to-school season. He adds that “price pressures on handsets continue to mount.” He notes that the mix of Apple (AAPL) iPhone 3G sales during August has shifted “decidedly” toward the $199, 8GB model. He says that will increase the difficulty of selling other smartphones “in the usual $250 to $300 range.”

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