The worldwide mobile phone handset market is set to rebound from what was its worst ever year in 2001, to show growth of 1.8% in 2002, according to Attack of the Phones: Worldwide Handset Market Forecast and Analysis, 2002-2006, a new report from IDC.
According to the report, there is reason for optimism as shipments are projected to increase from 391 million in 2002 to 606 million in 2006, a compound annual growth rate of 9.5%. Modest growth in the handset market will come from first-time buyers and new subscribers in emerging markets, but replacement sales in mature markets will prove critical to overall market growth, says IDC.
The group says that a real market explosion is contingent on the deployment of next-generation networks and the availability of compelling content and applications.
“A wireless revolution is waiting in the wings,” says Kevin Burden, programme manager for Smart Handheld Devices at IDC. “When mass wireless adoption occurs, it will result in a paradigm shift comparable to that created by the world wide web. However, until that happens, handset vendors must continue to research and develop enhanced features and functionality that will drive higher average revenue per user.”
