Skip to content|Skip to Sections

Fixed Mobile Handsets Special Feature

Coping with handset slowdown

13 October 2006
Telecoms Special Features

Since the turn of the century, the worldwide mobile handset market has enjoyed double digit growth on a year on year basis. However, experts predict this sort of growth will begin to slow from as early as next year.

In order to cope with the slowdown, handset manufacturers will have to improve their designs dramatically to prompt user upgrades. But even enticers such as digital cameras are not expected to give handset manufacturers the sort of growth they have enjoyed.

Rather, music and mobile TV look set to become the next key battlegrounds for manufacturers trying to maintain healthy growth.

Indeed, Sony Ericsson reported that second quarter earnings almost doubled due to strong sales of its Walkman music phones. Meanwhile, Nokia has been filling out its product line with more clamshells, slide phones and other non-monoblock models.

But as operators strive to increase the adoption of data services and 3G applications, handset vendors are also scrambling to accommodate software customisation with nearly a quarter of handsets expected to have operator exclusive hardware designs.

Of course, this all goes for developed markets. Developing regions are expected to deliver the largest pool of new subscribers going forward and in emerging markets cost is the key.

Vendors such as Motorola have been pioneering the low cost handset model for developing regions, but the difficulties in targeting these sectors do not just focus on building a cheap handset, but also packing it with the same features available in the more developed world. In order to drive the adoption of content and data, there are huge implications in leaving out key features such as cameras and MP3 players.

The latest edition of Future Mobile Handsets strategic report is now available to buy click here 

Other articles in this Special Feature: