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8th December 2003 - The cellular phone market
has held its own in recent years, despite a dramatic
fall-off in overall IT spending. Shipments of
handsets have remained relatively strong while
other products - PCs and PDAs, for instance -
have stagnated. And most wireless service providers
have endured in a tough economic climate. Now
the industry is on an upswing, and end-users have
a wide range of new phones and service options
from which to choose.
A recent survey by high-tech market research
firm, In-Stat/MDR has confirmed that, when buying
a cell phone, the wireless service provider matters
most to end-users.
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The cell phone brand is of secondary importance to
consumers, who for the most part have either a Nokia
or Motorola model. For these two frontrunners, their
brands have the greatest strength among respondents
to In-Stat/MDR's survey, with no other brands coming
close, not even registering double-digit percentages.
In-Stat/MDR's survey also found that:
- Size is what respondents like most about their current
phones.
- End-users seek an affordable device that can handle
e-mail, some location-based services, and the taking
and sending of photos.
- Respondents also would pay for new services but
at a fairly low rate.
- Microsoft's operating system is just now getting
into cell phones, and some end-users are open to these
kinds of devices, while others are not.
- End-users are willing to spend for new cell phones,
but not much beyond $100.
This Market Alert is drawn from the In-Stat/MDR report,
"Size
and Service Provider Matter: What End Users Really Want
When Buying a Cell Phone ", which includes
data on the cell phone features end-users want most,
the new data services they're considering, and their
sense of brand loyalty when considering their next phone.
Also included is information on how likely end-users
are to buy a new cell phone in the next 12 months.
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