Feeds

World mobile phone market growth to stall

Revenues will not reach 2005's peak until 2009, researcher warns

The Power of One Brief: Top reasons to choose HP BladeSystem

Mobile phone shipments may rise this year, but manufacturers are going to see revenues fall as the momentum driving the market over the past few years stalls.

That's market watcher iSuppli's forecast, at any rate. This week it predicted that global factory revenue will fall 4.7 per cent from $115.1bn in 2005 to $109.7bn this year. While growth will resume in 2007, the firm reckons, it will be slow, and sales will not match 2005's total until 2009.

Production will plateau at around 900m units a year for the rest of the decade in market contrast to the rapid output growth seen from 2002-2004, the researcher said, when output grew from around 450m units to roughly 750m. Last year saw an improvement over 2004's figures - it produced record revenues and shipments - but the numbers revealed the start of a slowdown.

It's the classic set of circumstance: the world's mobile-phone markets are saturated, and sales are coming almost exclusively from replacement activity rather than new users. At the same time, prices are falling at a rate iSuppli describes as "precipitous".

iSuppli reckons the global average selling price (ASP) will fall 9.2 per cent this year from $142 last year to $129. Vendors are trying to boost demand in emerging markets with very cheap handsets. Elsewhere, the need to drive 3G adoption is forcing them to offer high-end phones at lower price points than they might once have commanded.

The good news is that by 2007 the ASP will have fallen to just $128, a fall of a single percentage point, and iSuppli is forecasting sub-one per cent drops in following years, largely driven by cheaper components. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.