Mobile market continues to grow worldwide and the global mobile subscriber base reached 2.130 billion at 2005 end, an increase of 375 million from the beginning of that year. This number is anticipated to reach to approx 4 billion by 2011 end. Also, in the same period, the world population is believed to rise to about 6.9 billion from current 6 billion. It means that penetration of worldwide mobile phone market should cross 50% mark by around 2009 end.
The operating margins are under pressure because of the increasingly tough competition. It appears that future will face tough time as the market is maturing rapidly. Fortunately, handsets are not the only devices, which can be linked to mobile networks. Notebook computers and various kinds of machines are the next in line to get the capabilities of mobile communication. With a 3/4th of a billion new devices to link, developments are on the way taking the sector in a new direction.
The surging mobile market for handheld-based GPS navigation solutions in Western Europe gave a massive hike to vendors in the last few years. But this has changed rapidly to the demand for devoted 'transferable' devices. The vendors who don't operate in this field are missing out. But this is too early to say what will be the face of future industry.
In the coming years, service providers and device vendors in different categories will be presented with more changes and new opportunities. Increased GPS integration in mobile phones and tenacious communication between enterprise database (calendaring, CRM and contacts) and navigation systems are few examples of fields that will be explored by vendors of smart mobile phone device.
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http://www.rncos.com/Report/COM34.htm
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Global Mobile Phone Market
Nokia has 35.2 percent of the market in the quarter, up from 34.1 percent a year earlier, research company Strategy Analytics said Thursday. Motorola increased its share to 21.9 percent from 18.2 percent.
Sony Ericsson Mobile Communications expanded its share to 8.7 percent from 6.6 percent.
- Emerging markets, mostly Asia Pacific and Africa, will continue to be the main engines of global volume, but not profit, growth, Strategy Analytics said.
- eveloped markets, such as Western Europe, will remain relatively sluggish.
Strategy Analytics forecast global unit sales to reach 1.14 billion this year, up 12 percent from 2006.
Big move
Sony Ericsson said earlier in January that its profit tripled in the fourth quarter on surging handset sales.
Measured by revenue, Sony Ericsson overtook Samsung's mobile phone unit for the first time in the fourth quarter, according to the Strategy Analytics numbers.
Samsung'ss share in the Q4 2006 slipped to 10.7 percent from 11.1 percent a year earlier. Samsung's handset earnings missed estimates as it cut prices to compete with Nokia and Motorola.
- Samsung is losing out to Nokia in smart phones, while Motorola and Sony Ericsson have gained serious momentum in feature phones, Strategy Analytics said.
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