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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Japan expands nuclear evacuation, stops radiated water | 11:15am EDT Japan expands nuclear evacuation, stops radiated water | 11:15am EDT China tells U.S. to quit as human rights judge 10 Apr 2011 African peace plan for Libya founders | 11:37am EDT Japan orders extra nuclear safety step as aftershocks jolt 8:33am EDT Discussed 136 Reid says Republicans want shutdown to close clinics 113 Obama, Congress struggle to find budget deal 82 Stumbling blocks remain in budget fight Watched Ivorian forces smash magical stone Sun, Apr 10 2011 African Union leaders meet with Gaddafi Sun, Apr 10 2011 Japanese PM visits devastated city Sun, Apr 10 2011 Japan quake to color phonemakers quarterly figures Tweet Share this By Tarmo Virki, European Technology Correspondent HELSINKI (Reuters) - The impact of last month's earthquake in Japan on the $214 billion cellphone industry will be under the spotlight when the world's top phonemakers report their quarterly earnings... Email Print Related News Nikkei slips as autos sag; seen rangebound before earnings 3:08am EDT Will corporate earnings justify gains? Sun, Apr 10 2011 HTC first quarter profit triples on Android popularity Fri, Apr 8 2011 Cameraphone sales seen topping 1 billion in 2011 Thu, Apr 7 2011 Smartphones surging, Nokia to tumble: analysts Thu, Apr 7 2011 Analysis & Opinion Should bloggers get embargoed World Bank reports? Tech wrap: Wozniak open to active role at Apple Related Topics Technology » Media » Stocks A Sony-Ericsson Xperia Play is displayed at the GSMA Mobile World Congress in Barcelona, February 14, 2011. Credit: Reuters/Albert Gea By Tarmo Virki, European Technology Correspondent HELSINKI | Mon Apr 11, 2011 7:37am EDT HELSINKI (Reuters) - The impact of last month's earthquake in Japan on the $214 billion cellphone industry will be under the spotlight when the world's top phonemakers report their quarterly earnings from next week. Nokia, Research In Motion and Sony Ericsson have said the earthquake and resulting tsunami, which has shut down factories and affected deliveries, could hit their supply of components or the availability of their phones. "There is widespread uncertainty about the Japanese situation ... We believe the shortages will start to bite in the third quarter, when we'll get a clearer picture of who is most affected," said Ben Wood, head of research at CCS Insight. Phone vendors usually carry four to five weeks' supply of components, and have an additional six or seven weeks' inventory of finished phones in the sales channel, said research firm Gartner. "The real extent of the impact remains unclear as it will depend on how quickly some of the factories that are still closed will re-open," said Gartner analyst Carolina Milanesi. One of the critical bottlenecks could be the Japan-originated chemicals used in phone batteries, she said. Kureha Corp, which satisfies about 70 percent of the market for heat-resistant polyvinylidene fluoride (PVDF), used as an adhesive in lithium ion batteries, halted production at its factory in Iwaki, Fukushima Prefecture, following the disaster. The company has been relying on inventories and hopes to restart production at the end of April, but a spokesman said it was likely that clients had been affected. SONY ERICSSON WARNING Sony Ericsson, a joint venture between Sony Corp and Ericsson, said last week the quake was limiting the volume of its arc, Play and neo smartphones, and delaying the wider launch of the neo to the third quarter. "Given these three devices are central to Sony Ericsson's relatively narrow 2011 portfolio, there is likely to be considerable concern about the financial implications," said CCS's Wood. Sony Ericsson warned in January of a weak first quarter as it struggled to fill an awkward hole in its product portfolio, with old models losing appeal faster than the firm expected and new models only starting to help from the second quarter. The company has to cut the prices of its old models to maintain its market position, analysts said. "Older products will have to be discounted to remain somewhat relevant. Sony Ericsson really needs the new products to get to the market and ramp up quickly," said Milanesi. Also Nokia, the world's biggest vendor by volume, warned last month it would have shortages of some of its phones as the quake is set to cause industry-wide shortage of components and raw materials sourced from Japan, but said the impact on earnings would be limited. 1 2 Next Technology Media Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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