Handset market updates

According to Strategy Analytics, a market research company, the industry has experienced a 25% growth in '06 to reach an all time record of 1 Billion handsets shipped. Compare this to the 1997 figure of 100 Million, and you begin to realize what an unprecedented ride this has been. For those of us "old timers", it is interesting to reflect back on this, and ponder what is on store for the coming year and beyond.

Strategy Analytics forecasts 12 percent shipment growth during 2007, for 1.14 Billion units. Whereas, the driver of growth will be from the emerging market sector: India, Asia, and Africa. The issue here, is that this market segment is primarily made up of low cost entry level models. Many of gsmExchange members concentrate on this market segment, via low end handsets such as the Motorola C series, as well as the used and refurbished phones.. So, we hope to see plenty of winners here; gsmExchange will be pushing all the right buttons to help them access these new markets. More on that latter.

Talking about Motorola; they have maintained their market share but at the expense of profitability. Reason: RAZR gradually falling out of favour with the ensuing price degradation on the one hand, and their strong presence in the Ultra Low cost handset category.

Another manufacturer has had a very good year: Sony Ericsson. Five years ago, Ericsson was about to pull the plug on its handset business, has had a hell a turn-around. Strategy Analytics has found that in Dollar terms at least, Sony Ericsson became the world's third largest handset vendor, overtaking Samsung for the first time. And in the UK market, S/E is the market leader with Nokia trailing behind it!

Although gently maturing, the mobile handset market is continually changing, and remains very dynamic. Distributors and Traders will profit handsomely if they play their cards right.

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