The mobile terminal market grew by 21% between 2003 and 2004, with revenues increasing from about $73.3 billion in 2003, to a predicted $91.5 billion in 2005, according to data released by market intelligence firm IDATE.
A new report by US analysts eMarketer reveals that unit shipments will also see a dramatic increase, rising from 510 million in 2003 to 710 million in 2005.
Nokia is still reported to be the dominant player within the arena, despite a loss in market share between 2003 and 2004, with 32.2% of total mobile terminal revenues, down from 35.3% in 2003. Motorola and Samsung managed to gain some market share between 2003 and 2004, with Motorola rising from 14.7% share to 16.2%, while Samsung released it share from 10.9% to 13.4%. Overall the rankings remained unchanged.
IDATE predicts competition within the market will be strong in 2005, due to the acceleration of the 3G market. The Group forecast growth to be especially notable in Western Europe, where IDATE estimates that subscriptions reached 5.4 million users in 2004. The UK and Italy lead the way with 3G subscriptions, each boasting over 2 million.
The number of 3G subscribers in the Asia-Pacific region is also predicted to increase, with analysts IDC forecasting the number of 3G subscriptions for the region to rise from 10.5 million in 2004 to 15.5 million in 2005. Almost 89% of these subscriptions will be in South Korea.
eMarketer argue that these rapidly maturing markets present an opportunity for mobile vendors to increase penetration of their 3G services.
Commenting on the research, Noah Elkin, eMarketer senior analyst said: “High-speed 3G networks are poised to trickle down everywhere, even in the US. Operators in the US have been relative laggards in launching advanced wireless networks, but they also have not had the same capacity constraints, license obligations and financial pressures as European carriers.”
He continues: “The big question is whether US operators will be able to upsell existing users to new, more expensive handsets and service plans. The experience of operators elsewhere in the world has been disappointing.”
In its 3G Trends Analysis: A Quarterly Briefing, the Wireless World Forum predicted that subscribers of third-generation (3G) mobile telephones would nearly double over the next year, growing from 45 million in 2004 to 85 million in 2005 (see Global 3G Subscribers To Double to 85 Million In 2005).
Related Links
