|
News
Issue #2001 - 14
(Apr. 2001)
(Updated
April 4, 2001)
MARKET
OUTLOOK
Slower Growth Predicted for Mobile Phone Sales, say analysts
Analysts at Dataquest Inc., a unit
of Gartner, Inc., predict worldwide mobile phone sales will experience
slower growth over the next five years. Even though worldwide mobile phone
sales are projected to exceed 506.5 million units in 2001, a 23 percent
increase over 2000, the growth rate for 2001 is slower than 2000, when sales
were up 38 percent.
"The rapid annual growth rates of the past several years concealed
numerous operational and strategic weaknesses among global handset
manufacturers, Bryan Prohm, senior analyst for the research firm’s
Telecommunications Group. "Supply has finally surpassed demand, and
although sales growth will continue, only those manufacturers with a
strongly differentiated offering will continue to thrive, he added.
Overview of Predictions for 2001
- Asian/Pacific and Japan market, with a 31 percent increase, will
surpass Western Europe, with a 19 percent growth rate over 2000, as the
No. 1 region in 2001
- North America mobile phone sales are forecasted to reach 90.1 million
units for 2001, reflecting an increase of 18 percent
- Latin America will grow 17 percent, with sales expected to exceed 42
million units
Overview of Predictions for 2005
- Worldwide sales will come close to 740 million units by 2005
- Asia/Pacific and Japan will continue to lead with 280 million units
projected for 2005
- Western Europe is expected to hold second place with sales of 207
million units
For more information: http://www.gartner.com
Mobileinfo Comments and
Advisory: Most of the handset
forecasts during the past few years were based on inherently untenable
assumption of extremely elastic demand and limited resistance from consumers
for short handset renewal cycle against limited incremental value. While we
agree that forecasting of global demand where developing regions are consuming
an increasing number of handsets, current trends do call into question the
methodology and sophistication of these forecasts. We find these numbers to be
respectable. Business planners must allow for slow downs in demand and react
accordingly.
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.
|
