Feeds

Cellphone shipments grow up to 49 per cent in Q1

Not necessarily good news for the biz

  • alert
  • submit to reddit

Website security in corporate America

Sales of mobile phone handsets grew by double-figure percentages in key regions during Q1, market watcher Strategy Analytics has reported.

However, that's not necessarily good news for cellular network providers, handset vendors, or handset component makers, research from In-Stat/MDR suggests.

SA's numbers show that GSM handset shipments grew 13 per cent year-on-year during Q1, with Nokia not only retaining but increasing its leading market share. It saw 18 per cent shipment growth during the period. But its profitability increased just two per cent year-on-year.

The CDMA market, meanwhile, grew 49 per cent over Q1 2002, largely thanks to high demand in the Americas, SA said. Samsung and LG were the winners here, recording 41 per cent and 81 per cent year-on-year shipment growth, respectively.

"Shipment growth does not equal profitability," said Chris Ambrosio, director of SA's Wireless Device Strategies Service. "With the exception of Nokia, vendor profits were flat or declining. Shipment growth for the top six vendors was slightly faster than the market rate at just under 19 per cent, but profits grew only three per cent.

"Vendors still have a long way to go in improving internal efficiencies, and in developing and commercialising diverse handset portfolios," he said.

Consumer acceptance is a problem too. As In-Stat/MDR notes, "while the number of handsets continues to increase, the vast majority of handsets sold each year are standard, voice-centric devices, and not the data-centric devices that service providers were hoping for".

That has a knock-on effect for component makers. In-Stat/MDR says is expects core handset semiconductor revenue to stay flat for the next few years, as falling component prices counter gains from increased sales. Across a broader timescale, 2002 to 2007, the company expects semiconductor revenues to fall by an average of just over three per cent.

That said, revenue derived from components providing extra functionality - Bluetooth, cameras, MPEG-4 playback, that kind of thing - will do better. In-Stat/MDR forecasts revenue from such "add-ons" to grow from $856 million this year to $1.7 billion in 2007.

But the add-on semiconductor market will never be larger than ten per cent of the core semiconductor market, suggesting that while add-ons will become more popular, prices will fall fast, and - more importantly - they're not going to redefine handset usage in any great way. ®

Internet Security Threat Report 2014

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.