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Latin America's New Handset Sales Forecast
Yankee Group, The, Sep 2004, Pages: 12
With increased competition, large operators such as America Movil (AMX), Telefonica Moviles (TEM), Telecom Italia Mobile (TIM) and Verizon are consolidating the market, thereby decreasing the number of operators. In addition, handset manufacturers (such as Panasonic, Gradiente, Sagem, Venko, Kyocera and Handspring) launched new products in the region, increasing the competition with traditional manufacturers (such as Nokia, Motorola, Samsung, LG, Siemens and Sony Ericsson). This situation—fewer operators and more handset manufacturers—has increased operators’ bargaining power when negotiating with manufacturers, forcing handset prices down.
Operators and manufacturers—looking to increase market share and handset sales—have worked hard to increase the number and quality of distribution channels and have invested substantially in advertising and marketing. Moreover, operators have migrated their networks to new technologies. Looking for rapid ROI, operators want to push sophisticated services such as multimedia messaging services (MMSs). Motivating users to adopt new devices is crucial for the deployment of easy-to-use data services.
This report shows that this competitive dynamic among wireless operators and handset manufacturers has supported a robust increase of new handset sales in Latin America.
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