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News
Issue #2002 - 27
(July 2002)
(Updated July
17, 2002)
MARKET
OUTLOOK & TRENDS
Gloomy Wireless Outlook Will Take a While to Switch to Blue Sky
Various signals indicate
somewhat somber outlook for wireless data and wireless
infrastructure market. Last week’s vendor exhibits and attendance
at Comdex in Toronto confirmed this outlook. The number of
exhibitors and vendors, according to MobileInfo’s estimates was
almost one half of last year’s poor showing and perhaps 15-25% of
the peak a few years back when even Skydome stadium in Toronto was
filled up.
There are a number of factors attributed to this. Investor
skepticism in the wake of the WorldCom scandal and aggressive price
competition among U.S. wireless carriers are among many reasons many
analysts expect the companies to report lackluster results for the
remaining of this year. Though the companies are expected to meet
expectations, those expectations have been lowered. Sprint PCS, for
example, is expected to add 300,000 new subscribers, but its
previous goal was to add 700,000 to 750,000 subscribers during the
period. (Source: Reuters)
Additional Source: http://www.reuters.com
MobileInfo Advisory & Comments: this is a period when
structural changes are taking place in the marketplace with
enterprises preserving their liquidity and consumers holding on to
their fast-deleting assets. Therefore, capital expenditures are down.
Once the shakedown is complete, things will start improving slowly in
2003.
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.
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