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2002 Handset Forecast Down, But Not Out
URL(s): www.instat.com
SCOTTSDALE, Ariz., May 29, 2002 -- Despite having
experienced a myriad of difficulties over the past year,
the global handset industry will grow from $60 billion this
year, to more than $100 billion in 2006, according to In-
Stat/MDR (http://www.instat.com). In 2001, handset sales
were plagued by overproduction, delays in the arrival of
handsets with the desired feature sets, and a faltering
worldwide economy. However, according to Ray Jodoin, a
Principal Analyst with the high-tech research firm, "we can
still look forward with a moderate amount of enthusiasm.
Now that prepaid subscribers are being de-emphasized in
many regions, the percentage of low-featured, low-margin,
handsets are on the decline and prices are expected to
remain reasonably stable over the next 5 years."
For handset sales growth to rebound to previous levels, a
number of conditions will be necessary:
- Reasonably priced and desirable content. Ideally,
without a "cover charge."
- 3? x 5 CM (minimum) color display.
- Intuitive operation.
- Multi-functional Global Positioning System (GPS).
- Multi-band roaming capability.
- The ability to replace a cordless phone in both home
and office (Desk/Countertop nano-basestation).
"Content is key," says Jodoin. "While voice will continue
to drive the worldwide market for the foreseeable future,
data can help drive handset sales, not to mention margins,
as well as carriers' Average Revenue per Users (ARPUs),
upward. This is contingent, however, on whether the content
and price are right, which they currently are not."
In-Stat/MDR has also found that:
- In 2002, The Americas will account for the activation
of 25.8% of the worldwide handset uptake.
- Latin America will take an increasingly important roll
in handset activations, as their share of the
worldwide market climbs to 10.2% in 2006.
- In 2002, Rest of World (ROW) will account for the
activation of 43.4% of the worldwide handset uptake,
giving them a dominant Share of Market (SOM) position.
The report, "Down, But Not Out! 2002 Handset
Forecast"(#IN020340GW), explores the worldwide market for
1G, 2G, 2.5G, and 3G handsets. To purchase this report, or
for more information, please visit
http://www.instat.com/catalog/cat-cw.htm
or contact Erin McKeighan; emckeighan@instat.com
at 480.609.4551. The report is priced at $3,495 USD.
In-Stat/MDR (http://www.instat.com) offers a broad range of
information resources and analytical assets to technology
vendors, service providers, technology professionals, and
market specialists worldwide. The company stands alone in
its ability to integrate both supply-side and demand-side
research methodologies into a single comprehensive view of
technology markets and products. This capability relies on
a unique ability to cover the entire value chain from
engineering-level technology, through equipment,
infrastructure, services and end-users.
In-Stat/MDR is part of the Reed Electronics Group, a
division of Reed Elsevier (www.reedelsevier.com), a world-
leading publisher and information provider. With over
38,000 employees worldwide, Reed Elsevier operates in the
science & medical, legal, education and business-to-
business industry sectors, providing high value and
flexible information solutions to professional end users,
with increasing emphasis on the Internet.
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