This year will be a disappointing one for the European cellular handset industry, according to a report released by the Yankee Group this month, which claims that saturating markets, infrastructure delays and other external events during 2001 “have all conspired to abruptly turn booming sales into the first ever year of market contraction.”
Nevertheless the
European Cellular Handset Forecast: Revolving Around the Replacement Cycle report says that the market is in a transitory period, with GPRS – a faster and higher volume data delivery system – already beginning to gain a foothold and investments in 3G (third generation mobiles) still to bear fruit (see
Forecasts).
“With European markets on the verge of complete saturation, the halcyon days of double-digit growth are indeed past,” says Farid Yunus, senior analyst in the Yankee Group’s Wireless/Mobile Europe research and consulting practice. “But GPRS handsets and color interfaces will prove major factors in stimulating renewed demand in 2002.”
The report also forecasts that there will be sales of 150 million handsets in western Europe in 2002, rising at a compound annual growth rate (CAGR) of 7% to reach 196 million in 2006.
Steady migration toward 3G will take place, with the total 3G installed base reaching more than 150 million or 42% of total European total by 2006.
