Despite a trying time in 2002, handset and handset component manufacturers can look forward to steady market growth in the future, according to new research from analysts at In-Stat/MDR.
The new study,
Wireless Handset Components – The Rapidly Evolving Mix, reports the trends and technology in mobile handsets, assessing the implications for semiconductor manufacturers.
In-Stat/MDR acknowledges that, after years of extraordinary growth, the handset industry has encountered a ‘series of stumbling blocks’. Prominent among these has been a lethargic world economy and consumer apathy towards mobile data services.
2001 was without doubt the worst in the history of wireless technology (see Mobile Phone Sales Fall For First Time In 2001) but the decline in replacement rates began to slow last year (see Global Mobile Replacement Rates Decline Stabilises) and increased shipments in the second half raised hopes of recovery.
Many markets are now approaching saturation point but even so, it is estimated that there was a 6% increase in global handset sales in 2002 (see Worldwide Mobile Sales Up 6% In 2002). The main disappointment is that demand for mobile data services has been sluggish (see Operators Look To Cash In On Mobile Services) and the lion’s share of phones sold each year are standard, voice-centric devices. However, with third generation handsets now on the market and wireless capability expanding, there is great potential for progress. The only danger would appear to be the bane of over-expectation.
Allen Nogee, a principal analyst with In-Stat/MDR commented: “Signs of returning growth are starting to appear, and with 2.5G and 3G already in operation, long-term prospects for growth look good, and new technologies look promising, although the days of rapid growth in handset semiconductor revenue are behind us.”
