Handset market updates
A good time for cellular consumers in North America
Undoubtedly this is the driving force behind Samsung's product expansion which will see them produce 60 model devices in 2007, in an attempt to increase their diverse market share of the U.S. Samsung is hoping in particular to rival any competition from the infamous iPhones set for release next year, and to promote its own line of music phones.
Though there maybe trouble ahead for Samsung as it faces a lawsuit over the name of its Blackjack smartphone, which Motion Ltd claim to be too similar to their RIMM Blackberry.
With a population of over 333 million, there is no doubt that the North American market has not yet reached its full potential for cell phone penetration. The fact that U.S consumers tend to change handsets every 14 to 18 months on average, means that the replacement time between handsets is getting ever shorter, as expectations from users gets higher. Though the demands of wireless service providers within the U.S., means that Motorola leads the way for market share, followed by Samsung and Nokia Corp. placed in third.
The handset market in North America, while growing ever larger, will undoubtedly create more pressure on manufacturers to diversify their product lines while at the same time keeping margins low. According to Mark Sue, an analyst for RBC Capital: "The product cycle is shortening, and consumer fickleness is increasing, forcing them to put out more handsets. That's good for consumers, but not so good for a company's financial metrics."
So keep a close eye on the developments within North America, it will undoubtedly be an exciting time for change for both consumers and manufacturers alike...
