Skip to main content

European Mobile Phone Market Consolidates

According to IDC, the Western European mobile phone market (consisting of traditional mobile phones and converged devices) maintained double-digit growth in the opening quarter of 2006 as shipments increased by 11 percent year on year to reach 40.7 million units, compared to 36.8 million in the corresponding quarter of 2005.

"Although mounting saturation in subscriber growth across Europe is increasingly inhibiting handset shipment growth, the market in 1Q06 matched the growth rate exhibited in the opening quarter of 2005 despite a lack of impetus commonly provided by new handset launches," said Geoff Blaber, senior research analyst, European Mobile Devices at IDC. "Mounting consumer migration towards WCDMA devices driven by competitive service pricing and ASP declines, combined with highly aggressive handset subsidies across operator portfolios, was a key market performance driver in 1Q06."

However, despite relatively healthy unit volumes, intense vendor competition, ASP declines, and sustained scrutiny of handset portfolios and costs by mobile operators continued to have a negative impact on vendor profit margins. Furthermore, downsizing of portfolios meant the top 3 vendors accounted for almost 70 percent of all traditional mobile phones shipped, compared to 62 percent in 2005.

"Operators' scrutiny of handset portfolios is now beginning to significantly impact vendors without the capability and resources to meet stringent operator demands across multiple product lines with regard to software and hardware customization, UI, and form factor design. Such vendors need to focus R&D towards operator requirements by integrating such components to produce closely positioned products that serve very specific segments," said Andrew Brown, program manager, European Mobile Devices at IDC.

With increased carrier demand for highly customizable devices and higher ARPU (average revenue per user) driving solutions also meant that converged devices increased their proportion of the total market to 7 percent in 1Q06 from 5 percent in the opening quarter of 2005 as consumers continued to migrate predominantly towards S60 devices from high-end feature phones. However, converged device market growth of 43 percent year on year was disappointing due largely to portfolio transitioning for a number of vendors and a general lack of new device releases.

"Strong anticipated converged device growth in both consumer and enterprise segments, combined with the introduction of new form factors and technology improvements, particularly with regard to imaging, will drive a healthy renewal market in 2006. Consequently, IDC forecasts total mobile phone market growth of just under 10 percent with shipments expected to exceed 185 million units," said Jean-Philippe Bouchard, senior research analyst, European Mobile Devices at IDC.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Credit Scoring Service Spending will Reach $44B

Credit scoring is a method that lenders use to predict the probability a borrower or counter-party will default on loans, or incur additional charges for repayment -- also known as measuring credit worthiness. The method is a key tool in making credit affordable for individuals and businesses. It links credit products to risk potential, connecting borrowers to secondary capital markets and increasing the amount of funds available. This securing process establishes risk predictability dependent on a number of factors, determined by financial indicators and other publicly available information reported by the credit bureaus. Credit Score Market Development According to the latest worldwide market study by Juniper Research, they now forecast credit scoring services will grow by 67 percent to $44 billion by 2028. Juniper anticipates that emerging markets will experience the greatest growth -- projecting the African & Middle Eastern region to grow by 117 percent over the forecast period