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December 2002 - The global handset market was moving
ahead in the third quarter of 2002, as leading manufacturers
reported growing shipments heading into the crucial
fourth quarter, according to In-Stat/MDR (http://www.instat.com).
Finnish handset maker, Nokia, reported a return
to growth and strong profitability, bolstered by
sales of color-display models, and other vendors
such as Samsung and LG Electronics in particular,
also came out with strong 3Q shipment figures. Even
struggling Sony Ericsson reported sales gaining
momentum late in 3Q as the company introduced new
mid-tier and entry-level models. Motorola, turning
its first quarterly profit since the end of 2000,
also had a decent quarter, with shipments up 8%
compared with a year ago. |
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Despite
the success in Q3, the heady days of strong double-digit
percentage growth may not return for a while, if ever.
Significant challenges still remain for handset makers,
including the reluctance of end users (especially in
Western Europe and North America) to spend beyond the
$100 to $150 range for replacement models, spotty rollout
of high-speed networks, the lack of compelling new mobile
applications, high penetration rates in developed countries,
struggling economies around the globe and market uncertainty
due to political/terrorist tensions.
The
high-tech market research firm has also found that:
- Overall,
unit shipments in the third quarter rose more than
5% from the second quarter and are on track for a
solid fourth quarter. Shipments are projected to grow
more than 11% sequentially as newer models, many with
color displays, reach end-users at affordable prices.
- Based
on stronger than expected shipments in Asia, the former
Eastern Bloc countries and Russia, total shipments
are projected to reach 434 million units - that's
a 7.7% increase year-over-year.
This
Market Alert is drawn from the In-Stat/MDR report, "Moving
On Up: Q3 2002 Handset Report" (#IN020315WH), which
examines the handset market, how revenues are expected
to grow, and provides shipment breakdown by region,
plus shipments by air link.
SOURCE
Instat MDR Back
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