Boston, MA - May 9, 2007 - The new Strategy Analytics update on LED demand from cellular handsets, "LED Demand from Cellular Handsets: 2006-2011," forecasts that LED flash will grow at a CAAGR of 23% through 2011 even though overall LED revenues from cellular handsets will decline. Backlighting applications will produce 63 percent of total LED revenue in 2011.

Continuing pressure on ASPs will mean that overall revenues from backlighting applications will drop from $1.30 billion in 2006 to just over $984 million in 2011.

"By 2011, 82 percent of all handsets shipped will include a camera," observed Asif Anwar, Director of the Strategy Analytics GaAs service. "This will drive LED demand for the camera flash function, which will be the only growth market for LED manufacturers--especially as the standard resolution for camera phones will feature 2 megapixel (Mpx) and above. 2Mpx and higher resolutions will feature in 68 percent of all camera phones shipped in 2011 driving LED flash demand," noted Stuart Robinson, Director of Strategy Analytics Handset Component Technologies (HCT) service. "Xenon-based flash penetrated only 4 percent of this market segment in 2006. However, LED-based flash will face growing competition from Xenon technology as camera phone resolutions increase."

Strategy Analytics also predicts that there will be an increasing number of LEDs going into handsets for other applications, including indicators for Bluetooth functionality, call alert and personalization, but the commodity pricing will offset volume demand.