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Western Europe Mobile Sales Growth Hampered By Slow MMS Rollout

Western Europe Mobile Sales Growth Hampered By Slow MMS Rollout

Sales of mobile phone handsets in western Europe will remain flat this year, after a 13% decline in 2001. Sales will then gradually rise to reach 148.2 million by 2007, according to new forecasts from Strategy Analytics.

The group says that sales growth is currently being dragged down by the slow rollout of multimedia messaging service (MMS) handsets and services, along with uncertainty over pricing structures for these services.

Chris Ambrosio, director of Strategy Analytics’ Global Wireless Practice says: “With a slow rollout of EMS/MMS services, and carriers’ inability to subsidise entry-level products, both sales and replacement rates will remain flat in 2002.”

The percentage of sales which are replacement handsets is set to increase, from 73.4% this year to virtually all sales – at 97.2% – by 2007, according to the forecasts. The research also found that in Western Europe, the total number of subscribers with two or more mobile handsets will increase from 5% in 2001, to 12% by the end of 2007.

Western Europe Handset Sales and Replacement Sales 
                   
  1999  2000  2001  2002  2003  2004  2005  2006  2007 
                   
Handset Sales 92 125.9 109.5 110.1 120.7 131.7 140.2 145.9 148.2
Replacement % of Sales 37.2% 40.7% 62.6% 73.4% 80.5% 85.8% 90.0% 93.7% 97.2%
Source: Strategy Analytics, June 2002 

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