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World Mobile Handheld Device Markets
Frost & Sullivan, June 2007, Pages: 45
Mobile Handheld Device Companies to Build Production Facilities in Low-cost Countries to Save Manufacturing Costs
The global mobile devices market is entering a transition phase. The market is likely to grow in terms of units, but decline in revenue and average price per unit. The majority of units manufactured between 2005 and 2010 will be low priced for the emerging markets. Attempts to prop up average price per unit using smart phones will have little impact on the global average price, but may attain price stability in the wealthier nations. Global mobile device manufacturers can salvage the situation by building production facilities in emerging markets to be closer to their new customers and also for cost savings.
This Frost & Sullivan research service provides an overview of the World mobile handheld devices market. The study has been segmented into smart phone and U.S. mobile services. This study looks at the production of mobile handheld devices on a global scale and the sale of these handsets in the lucrative U.S. market. The research enables companies to align their positioning strategies to benefit from the changing markets and obtain maximum return on investment.
Consumers Desire for Remote Access Drives Sales of Handsets
With consumers moving on from the Web to a wireless environment, applications such as messaging, ringtones, graphics, and games are making a beeline toward the mobile market. North American consumers that are accustomed to inexpensive and simple sources of personalized entertainment and informational services through the wired Internet are not likely to settle for anything less in the wireless space.
Wireless carriers have realized that consumers value relevant forms of entertainment and/or informational services in the mobile environment, says the analyst of this research. This Web-to-wireless transformation is driving the static directions model toward the mobile world, where the service can offer increased personalization and relevance.
The Youth Market Provides the Initial Impetus for Premium Mobile Content and Applications
The youth market is at the forefront of technology adoption in the global handheld devices market. This market segment is leading the way for the adoption of premium content and applications. The less price sensitive early adopters from the 13-25 age group could primarily drive the initial growth, notes the analyst. In fact, growth in mobile products such as ringtones, games, and graphics will displace spending on many traditional youth products such as music, clothing, and movies.
Currently, the youth segment spending on premium mobile ringtones accounts for the majority of the overall market revenue. Downloadable and interactive gaming concepts could also become popular with this population segment and provide long-term revenue growth. Those that adopt mobile technology at a young age are highly likely to continue doing so; there is continuity in adoption, observes the analyst.
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