| 26th July 2004 - As economies continue
to recover around the globe, the mobile handset
business continues to ride a growth curve as well,
reports In-Stat/MDR (http://www.instat.com). The
high-tech market research firm believes that shipments
will be strong again this year, as manufacturers
seek to fill surging demand for new mobile phones
in both emerging markets and mature ones. |
 |
Some leading manufacturers will enjoy a banner year,
including Samsung, LG, and Sony Ericsson. However, others
will not. Front-runner Nokia stumbled in Q1 because
of a lack of flip phones and stiff competition in the
mid-tier. Nokia is likely to lose some market share
over the course of the year, but will still maintain
a wide lead over its nearest rival, Motorola - which
has enjoyed a bit of a surge in sales lately. For a
few smaller players, 2004 brings the end, or nearly
so: Alcatel will take a reduced role as it partners
with China's TCL; Korean maker Sewon Telecom filed for
bankruptcy recently; and Audiovox is selling its CDMA
handset business to UTStarcom.
Nonetheless, most handset manufacturers will benefit
from a market with the following positives:
- Worldwide shipments growing 10.6% year-over-year
- A worldwide subscriber base on the rise - up 14.5%
this year over last
- Strong emerging markets in India, Eastern Europe,
and Latin America
- Camera phones with 1- and 2-megapixel resolutions
available on a wider basis
- Smartphones picking up momentum, though somewhat
slowly
- Replacement demand strong in mature markets
- Flip phones gaining in popularity
- Strong demand for mid-tier phones in established
markets
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