Skip to main content

Mobile Device Segment Continues to Grow

The worldwide mobile phone market grew at a healthy pace during the third quarter of 2007 with vendors shipping a total of 289.1 million handset units, according to IDC's Worldwide Quarterly Mobile Phone Tracker.

Worldwide shipments were up 9 percent from the previous quarter and 13.8 percent from the same quarter a year ago. Growth was driven by a combination of high-volume shipments of affordable handsets into emerging markets and high-end, feature-packed devices into mature markets.

The leading vendors improved both revenues and profits, in some cases building on double-digit operating profit margins as they balance their product portfolios.

"On a worldwide scale, the mobile phone market continued to post positive results in the third quarter, even as vendors struggle to balance revenue and profitability," said Ramon Llamas, research analyst with IDC's Mobile Devices Technology and Trends team.

On the one hand, emerging markets have required vendors to provide low-cost handsets, which boost volume but reduce revenue and sometimes profit per device. On the other hand, mature markets have an appetite for higher-end handsets that can generate more revenues and profit.

The leading vendors have been successful at balancing features and price for the distinct markets in a highly competitive space.

While growth in the overall mobile device industry has slowed over the past few quarters, the converged mobile device segment continues to grow several times faster than traditional phones, and accelerated to more than 50 percent year-on-year growth in the third quarter.

A wide selection of devices, combined with declining initial price points have made this segment of the market an immense growth opportunity for manufacturers. At the same time, this space is attractive for the operators because these devices are often bundled with a data plan, which in turn means increased revenue per user.

Popular posts from this blog

Manufacturers Benefit from GenAI Apps

Digital transformation goals continue to influence large enterprise IT spending. Generative Artificial Intelligence (GenAI) has now emerged as a transformative technology. Its ability to create entirely new business models or designs holds immense promise across industries. Still, a recent market study by ABI Research, presented at the 'Hannover Messe 2024' event, paints a somewhat cautious picture of GenAI adoption in the global manufacturing sector. ABI Research highlighted a strong presence of GenAI at the event, with industrial software vendors showcasing its application in the form of AI assistants and co-pilots. They forecast revenue from GenAI use cases in manufacturing will reach $10.5 billion by 2034. Manufacturing GenAI Market Development "The dominant use cases leverage core strengths of Large Language Models (LLMs) for Programmable Logic Controller (PLC) programming, code generation, step-by-step work instructions, and data enrichment and consolidation,"