Wireless Market in Good Shape, according to market studies

•	Home
•	Site Map
•	Solution & Product Guide
•	Applications
•	Business Cases
•	Hardware/Software Components
•	Mobile Computing Networks
•	Application Development
•	Systems Design Issues & Tools
•	FAQ
•	Other Resources
•	Education, Seminars, CBTs, Books
•	Vendor Links

NEWS
Issue #2001 - 12 (Mar. 2001)
(Updated on Mar. 21, 2001)

MARKET OUTLOOK

Wireless Market in Good Shape, according to market studies

Despite the downward spiral of technology stocks and vendors slashing their operating-profit projections, the U.S. based research firm Strategy Analytics has released three reports that paint a considerably brighter future for the mobile industry over the next five years.

The Cellular Users Worldwide
According to ‘Worldwide Cellular User Forecast (2001-2006),’ the global cellular market will double in size to 1.7 billion subscribers by 2006. The main areas of growth will shift from the North American and European markets, with only 20 percent growth in 2006 down from 50 percent at present, to Latin America and Central Europe, with a growth rate of 33 percent by 2006 up from 16 percent today.

CDMA systems will support 470 million subscribers accounting for 28 percent of worldwide users while GSM-based systems will account for 55 percent of the market in 2006, the report said.

The U.S. Cellular Market
According to ‘The U.S. Cellular Market Forecast Update,’ the U.S. cellular market will post a 24 percent subscriber growth rate this year and reach a penetration level of around 84 percent, with annual voice revenues at $86-million by 2006.

"Growth continues to be driven by the rapid adoption of dual and tri-mode digital phones and fuelled by ever-increasing buckets of minutes handset upgrade guarantees and increasing marketing dollars, comments David Kerr, vice president of Strategy Analytics’ Global Wireless Practice.

The Worldwide Cellular Shipments
The research firm also remains optimistic about the prospects for cellular handset volume over the next five years, with global shipments expected to grow annually by 17 percent. Strategy Analytics’ projections are set out in ‘Worldwide Cellular Shipment Forecasts.’ Authors of the report predict that handset shipments will reach 500 million in 2001 and topple 1 billion in 2006, with a high-percentage of replacement handsets.

Commenting on the rise and fall of the handset market, Mr. Kerr, said, "2000 was a year when Nokia continued to extend its leadership in market share while maintaining handset margins five to six times of those recorded by the nearest rival. With Ericsson and Motorola both abdicating their titles at lease in terms of contenders for the mass market, the door has been flung open for a new battle between Siemens, Samsung, Mitsubishi, and possibly Alcatel to compete for volume."

For more information: http://www.strategyanalytics.com/

Mobileinfo Comments and Advisory: Data for many of these reports was developed before the meltdown of the market and reports from Motorola, Nortel and Ericsson. We still believe in the fundamental strength of the industry but not in the timing. We also do not support monolithic view of the wireless market in terms of handsets and network infrastructure only even though that is sizeable. From our vantage (or disadvantaged) viewpoint of enterprise applications, incremental value by multi-mode handsets is there but is very small. Instead, the industry should focus on encouraging buildout of additional wireless Internet applications.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.

NEWS Options:
Recent | Date | Category | Press Releases

Reproduction of any material from the MobileInfo.com's website without written permission is prohibited.
-- Copyright © MobileInfo.com --