News
Issue #2002 - 47 (December 2002)
(Updated Dec. 22, 2002)

MARKET OUTLOOK & TRENDS

Worldwide Handset Market Rebounds from Worst Year Ever, IDC Study Finds

1. Worldwide Handset Market Rebounds from Worst Year Ever, IDC Study Finds
Despite being tied to a telecom industry that FCC Chairman Michael Powell recently described as "in utter crisis," the worldwide handset market will rebound from its worst year ever and increase shipments 1.8 percent in 2002. According to new research from IDC, there is good reason for optimism as shipments are projected to increase from 391 million in 2002 to 606 million in 2006, a compound annual growth rate of 9.5 percent. "A wireless revolution is waiting in the wings," said Kevin Burden, program manager for Smart Handheld Devices at IDC. "When mass wireless adoption occurs, it will result in a paradigm shift comparable to that created by the World Wide Web. However, until that happens, handset vendors must continue to research and develop enhanced features and functionality that will drive higher average revenue per user (ARPU)." Modest growth in the handset market will come from first-time buyers and new subscribers in emerging markets, but it will be replacement sales in mature markets that will prove critical to overall market growth. A true market explosion, however, is contingent on the timely deployment of next-generation networks and the availability of compelling content and applications, IDC said. (Source: Wireless NewsFactor)

2.Motorola Expects Higher Global Phone Sales Next Year
Though he gave no numerical estimates, Tom Lynch, head of Motorola's cell phone unit, said that the company expects growth in global industry handset sales next year. He reiterated Motorola's estimate that about 400 million units would be sold industry-wide in 2002, and said that average selling prices would decline slightly this year. (Source: Reuters)

Source: CTIA News

For more information: http://www.idc.com and http//www.wow-com.com

MobileInfo Comments and Advisory: The number of handsets sold is only one of several metrics that is relevant to the growth in this industry. ARPU per subscriber is more important. If this trend helps telecom industry vendors to get into black, this is good news and trend.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. 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.