SCOTTSDALE, USA: According to a new connected home devices study from ABI Research, “fourth screen” devices – some new, some variants on ideas that have been around for several years – promise novel experiences for users and new revenue streams for operators.
These devices include digital photo frames, media phones, and Internet appliances, Media phones will be among the fastest-growing device types, and will generate a market value above $5 billion by 2014.
ABI Research industry analyst Michael Inouye says: “While the first media phone models only appeared late last year in the US (earlier in Asia), more than 30 million units will be shipped in 2014. These devices, which feature video playback, Internet connectivity, and some form of voice functionality, will be among the strongest performers among Fourth Screen products.”
Digital photo frames have been in the market for some years, and currently ship in numbers that dwarf the other categories in this segment. Recently market growth has slowed somewhat, but a new Wi-Fi equipped variant is expected to show strong growth over the next few years before leveling off around 2013.
All these devices share one market obstacle. “Fourth screen devices in general are competing against more multifunction devices such as smartphones,” says Inouye. But for consumers who want more permanent, dedicated control, they can be a compelling proposition. One key to success for all these devices is definitely greater consumer education. Vendors and retailers are pinning many hopes on the holiday gift-giving seasons of the next few years.”
Showing posts with label ABI Research. Show all posts
Showing posts with label ABI Research. Show all posts
Friday, September 25, 2009
Saturday, September 5, 2009
Mobile cloud computing subscribers to total nearly 1 billion by 2014
NEW YORK, USA: ABI Research forecasts that the number of mobile cloud computing subscribers worldwide will grow rapidly over the next five years, rising from 42.8 million subscribers in 2008, (approximately 1.1 percent of all mobile subscribers) to just over 998 million in 2014 (nearly 19 percent).
Mobile cloud applications move the computing power and data storage away from mobile phones and into the cloud, bringing apps and mobile computing to not just smartphone users but a much broader range of mobile subscribers.
ABI Research recently released a major study of mobile cloud computing, which the company believes is the first published report to examine this disruptive technology model in depth.
According to senior analyst Mark Beccue: “From 2008 through 2010, subscriber numbers will be driven by location-enabled services, particularly navigation and map applications. A total of 60 percent of the mobile cloud application subscribers worldwide will use an application enabled by location during these years.”
Some quite innovative applications are already commercially available. Lock manufacturer Schlage, or example, has launched LiNK –- a keyless lock system for the home that enables subscribers to remotely control not only the door lock, but heating/cooling, security cameras and light monitors, all via PC or mobile device.
Business productivity applications will soon dominate the mix of mobile cloud applications, particularly collaborative document sharing, scheduling, and sales force management apps. ABI Research expects some or all of the major PaaS platforms — Google, Amazon AWS, and Force.com –- to market their mobile capabilities aggressively starting in 2010.
Beccue concludes by reiterating his finding that, “By 2014, mobile cloud computing will become the leading mobile application development and deployment strategy, displacing today’s native and downloadable mobile applications.”
Mobile cloud applications move the computing power and data storage away from mobile phones and into the cloud, bringing apps and mobile computing to not just smartphone users but a much broader range of mobile subscribers.
ABI Research recently released a major study of mobile cloud computing, which the company believes is the first published report to examine this disruptive technology model in depth.
According to senior analyst Mark Beccue: “From 2008 through 2010, subscriber numbers will be driven by location-enabled services, particularly navigation and map applications. A total of 60 percent of the mobile cloud application subscribers worldwide will use an application enabled by location during these years.”
Some quite innovative applications are already commercially available. Lock manufacturer Schlage, or example, has launched LiNK –- a keyless lock system for the home that enables subscribers to remotely control not only the door lock, but heating/cooling, security cameras and light monitors, all via PC or mobile device.
Business productivity applications will soon dominate the mix of mobile cloud applications, particularly collaborative document sharing, scheduling, and sales force management apps. ABI Research expects some or all of the major PaaS platforms — Google, Amazon AWS, and Force.com –- to market their mobile capabilities aggressively starting in 2010.
Beccue concludes by reiterating his finding that, “By 2014, mobile cloud computing will become the leading mobile application development and deployment strategy, displacing today’s native and downloadable mobile applications.”
Friday, September 4, 2009
Global LBS revenues to reach $2.6 billion in 2009
LONDON, UK: ABI Research expects location based services revenues to grow at 156% from $1.7 billion in 2008 to $2.6 billion in 2009. By 2014 global LBS revenues will have surpassed $14 billion.
“One of the main drivers of the strong growth in LBS is the popularity of an impressive number of off-deck LBS applications available for a one-off fee on smartphone platforms,” says ABI Research practice director Dominique Bonte.
“Apple’s iPhone is leading the way, followed by Blackberry, Nokia, and Android. There seems to be no limit to developers’ creativity in using location for functions such as search, social networking, messaging, micro-blogging and augmented reality. Combined with the astonishing popularity of the new generation of GPS-enabled touch screen smartphones, this will continue to constitute the lifeblood of LBS in the coming years.”
A more open strategy
Many carriers in both the US and Europe are waking up to this reality by gradually adopting a more open LBS strategy with Verizon increasing the number of unlocked GPS phones and Vodafone having acquired navigation software vendor Wayfinder. Both carriers are also making their networks accessible via open API platforms. Other carriers such as Sprint have opted to partner with location aggregators as a way to play a role in the LBS ecosystem.
Which models?
While there is no doubt LBS is heading towards mass market adoption, it remains unclear which pricing and business models will emerge successfully. Currently subscription-based models are making way for one-off pricing or free hardware-subsidized offers, but expectations for advertising revenues in the longer term remain high despite privacy and fragmentation issues.
Bonte concludes, “ABI Research expects many business models will continue to coexist with recurring fees for many enterprise, navigation and safety services, but free models for most other consumer applications.”
“One of the main drivers of the strong growth in LBS is the popularity of an impressive number of off-deck LBS applications available for a one-off fee on smartphone platforms,” says ABI Research practice director Dominique Bonte.
“Apple’s iPhone is leading the way, followed by Blackberry, Nokia, and Android. There seems to be no limit to developers’ creativity in using location for functions such as search, social networking, messaging, micro-blogging and augmented reality. Combined with the astonishing popularity of the new generation of GPS-enabled touch screen smartphones, this will continue to constitute the lifeblood of LBS in the coming years.”
A more open strategy
Many carriers in both the US and Europe are waking up to this reality by gradually adopting a more open LBS strategy with Verizon increasing the number of unlocked GPS phones and Vodafone having acquired navigation software vendor Wayfinder. Both carriers are also making their networks accessible via open API platforms. Other carriers such as Sprint have opted to partner with location aggregators as a way to play a role in the LBS ecosystem.
Which models?
While there is no doubt LBS is heading towards mass market adoption, it remains unclear which pricing and business models will emerge successfully. Currently subscription-based models are making way for one-off pricing or free hardware-subsidized offers, but expectations for advertising revenues in the longer term remain high despite privacy and fragmentation issues.
Bonte concludes, “ABI Research expects many business models will continue to coexist with recurring fees for many enterprise, navigation and safety services, but free models for most other consumer applications.”
Monday, August 31, 2009
Europe leads mobile managed services market at nearly $9 billion
NEW YORK, USA: When it comes to managed services for mobile operators, Europe leads the world’s most active regions this year.
ABI Research forecasts indicate that the European managed mobile services market will total nearly $9 billion in 2009. The Asia-Pacific region follows a distant second, with a market size of about $5.7 billion. Total managed services revenue for 2009 is forecast to reach $22.2 billion.
“Just a few large companies account for the lion’s share of the network-related managed services market,” says senior analyst Nadine Manjaro. “Ericsson and Alcatel-Lucent are the leaders in this space with both vendors recently announcing new managed services contracts and agreements. Among them: Ericsson’s $5 billion contract with Sprint – the first major penetration in North America. The company also signed a seven-year contract with Vodafone UK.”
In 2008 Alcatel-Lucent concluded a three-year managed services deal with Saudi mobile operator Mobily.
Nokia Siemens ranks third in the world in terms of market share, and recently announced managed services contracts with the Brazilian operator Oi valued at $1.57 billion.
Meanwhile the major managed services providers are working to extend their IT capabilities through partnerships or on their own; Alcatel-Lucent, for example, has established a global alliance with HP. The company also entered a managed service joint venture with Bharti Airtel in India.
ABI Research forecasts indicate that the European managed mobile services market will total nearly $9 billion in 2009. The Asia-Pacific region follows a distant second, with a market size of about $5.7 billion. Total managed services revenue for 2009 is forecast to reach $22.2 billion.
“Just a few large companies account for the lion’s share of the network-related managed services market,” says senior analyst Nadine Manjaro. “Ericsson and Alcatel-Lucent are the leaders in this space with both vendors recently announcing new managed services contracts and agreements. Among them: Ericsson’s $5 billion contract with Sprint – the first major penetration in North America. The company also signed a seven-year contract with Vodafone UK.”
In 2008 Alcatel-Lucent concluded a three-year managed services deal with Saudi mobile operator Mobily.
Nokia Siemens ranks third in the world in terms of market share, and recently announced managed services contracts with the Brazilian operator Oi valued at $1.57 billion.
Meanwhile the major managed services providers are working to extend their IT capabilities through partnerships or on their own; Alcatel-Lucent, for example, has established a global alliance with HP. The company also entered a managed service joint venture with Bharti Airtel in India.
Wednesday, August 26, 2009
All GSM calls under threat from hackers
UK: GSM call can be listened to by anyone with $500 and a laptop within six months!
At the recent Hacking at Random (HAR) conference, Karsten Nohl detailed plans for cracking standard GSM cell phone encryption, known as A5/1, and making the results available for anyone to use.
His presentation from the event is here -- https://har2009.org/program/attachments/119_GSM.A51.Cracking.Nohl.pdf
The implications for businesses, individuals and the mobile industry are enormous:
* Once complete it means anyone with a $500 radio card and a laptop will be able to listen in to GSM calls.
* It marks a lowering of the bar for criminals to be able to hack calls.
* It makes having someone listen to our calls a real-life threat for all of us
Stan Schatt, Vice President and Practice Director, Healthcare and Security at ABI Research, commented, “Potentially this news could have as profound an impact on the cell phone industry as the breaking of WEP encryption had on the wireless LAN industry.”
At the recent Hacking at Random (HAR) conference, Karsten Nohl detailed plans for cracking standard GSM cell phone encryption, known as A5/1, and making the results available for anyone to use.
His presentation from the event is here -- https://har2009.org/program/attachments/119_GSM.A51.Cracking.Nohl.pdf
The implications for businesses, individuals and the mobile industry are enormous:
* Once complete it means anyone with a $500 radio card and a laptop will be able to listen in to GSM calls.
* It marks a lowering of the bar for criminals to be able to hack calls.
* It makes having someone listen to our calls a real-life threat for all of us
Stan Schatt, Vice President and Practice Director, Healthcare and Security at ABI Research, commented, “Potentially this news could have as profound an impact on the cell phone industry as the breaking of WEP encryption had on the wireless LAN industry.”
Friday, August 14, 2009
In-building wireless deployment revenue to maintain 21 percent+ growth through 2014
LONDON, UK: The economic downturn is likely to cause a slowdown in North American and European in-building wireless (IBW) deployments during 2009-10.
ABI Research sees flat growth in those regions for ‘09-10, however typical 20-25 percent annual growth is expected to return by 2013. Buoyed by constant high growth rates in Asia-Pac and Middle East/Africa, IBW will post a very respectable worldwide revenue growth rate in excess of 21 percent over the same period.
The recession is global in scope: why are North America and Europe suffering more than other regions? The answer, says senior analyst Aditya Kaul, is partly in the scale: "In Europe and North America there is a greater proportion of large building deployments (500K sq. ft. and higher) and when those get postponed or scrapped, revenue is hit hard.
"NA and European operators have also seen their CAPEX being squeezed, which is not necessarily the case elsewhere. Also, in APAC and Middle East/Africa cheaper passive systems and repeaters are deployed to a greater extent."
In terms of IBW, some vertical industries fare better than others. In North America particularly, the hospitality and financial sectors have been affected badly. Shopping malls have slowed down as well. "IBW is intimately tied to the real estate market, especially new construction," says Kaul. "As real estate for specific verticals slows there is bound to be some effect on IBW."
In contrast, North American verticals such as healthcare are relatively unaffected. Healthcare is a mature market that has always shown strong growth, and continues to see a high demand for in-building systems that can support not just cellular but also VoWLAN, telemetry, location-based applications and electronic medical records.
University campuses are also seeing large IBW activity with some universities investing in their own systems.
ABI Research sees flat growth in those regions for ‘09-10, however typical 20-25 percent annual growth is expected to return by 2013. Buoyed by constant high growth rates in Asia-Pac and Middle East/Africa, IBW will post a very respectable worldwide revenue growth rate in excess of 21 percent over the same period.
The recession is global in scope: why are North America and Europe suffering more than other regions? The answer, says senior analyst Aditya Kaul, is partly in the scale: "In Europe and North America there is a greater proportion of large building deployments (500K sq. ft. and higher) and when those get postponed or scrapped, revenue is hit hard.
"NA and European operators have also seen their CAPEX being squeezed, which is not necessarily the case elsewhere. Also, in APAC and Middle East/Africa cheaper passive systems and repeaters are deployed to a greater extent."
In terms of IBW, some vertical industries fare better than others. In North America particularly, the hospitality and financial sectors have been affected badly. Shopping malls have slowed down as well. "IBW is intimately tied to the real estate market, especially new construction," says Kaul. "As real estate for specific verticals slows there is bound to be some effect on IBW."
In contrast, North American verticals such as healthcare are relatively unaffected. Healthcare is a mature market that has always shown strong growth, and continues to see a high demand for in-building systems that can support not just cellular but also VoWLAN, telemetry, location-based applications and electronic medical records.
University campuses are also seeing large IBW activity with some universities investing in their own systems.
Wednesday, August 5, 2009
Monthly mobile data traffic to exceed 2008 total in 2014
NEW YORK, USA: In 2014, the volume of mobile data sent and received every month by users around the world will exceed by a significant amount the total data traffic for all of 2008, according to a new study from ABI Research.
“When people think of mobile data they think of BlackBerry and iPhone handsets,” says senior analyst Jeff Orr. “But the bulk of today’s traffic is generated by laptops with PC Card and USB modems.” While add-on cellular modems represented two-thirds of traffic in 2008, computers with embedded 3G/4G modems will lead in 2014 with more than 50% of the world’s mobile data traffic.
Other key findings from the study include:
* Global mobile data traffic surpassed 1.3 Exabytes transferred during 2008. By 2014, an average of 1.6 Exabytes will be sent and received monthly.
* Nearly 74 percent of the world’s mobile data traffic will be from Web and Internet access by 2014. By the same time, 26 percent will come from audio and video streaming. Peer-to-peer file sharing and VoIP contribution to overall mobile data traffic will be less than 1 percent.
* Video streaming will experience the fastest growth of any IP traffic type at a CAGR of 62 percent between 2008 and 2014.
* Western Europe accounted for nearly 31 percent of mobile data traffic in 2008, but the region will yield to Asia-Pacific, which will account for over 28 percent, by 2014.
“The launch of 4G services promises even more data capability -– full multimedia on a greater number of devices,” notes Orr.
“But it’s a more pragmatic approach than 3G’s: data-centric devices will be adopted first, rather than a large number of phones. As network coverage and service plans satisfy market expectations, a variety of specialized consumer electronics devices with the ability to connect anywhere will emerge.”
“When people think of mobile data they think of BlackBerry and iPhone handsets,” says senior analyst Jeff Orr. “But the bulk of today’s traffic is generated by laptops with PC Card and USB modems.” While add-on cellular modems represented two-thirds of traffic in 2008, computers with embedded 3G/4G modems will lead in 2014 with more than 50% of the world’s mobile data traffic.
Other key findings from the study include:
* Global mobile data traffic surpassed 1.3 Exabytes transferred during 2008. By 2014, an average of 1.6 Exabytes will be sent and received monthly.
* Nearly 74 percent of the world’s mobile data traffic will be from Web and Internet access by 2014. By the same time, 26 percent will come from audio and video streaming. Peer-to-peer file sharing and VoIP contribution to overall mobile data traffic will be less than 1 percent.
* Video streaming will experience the fastest growth of any IP traffic type at a CAGR of 62 percent between 2008 and 2014.
* Western Europe accounted for nearly 31 percent of mobile data traffic in 2008, but the region will yield to Asia-Pacific, which will account for over 28 percent, by 2014.
“The launch of 4G services promises even more data capability -– full multimedia on a greater number of devices,” notes Orr.
“But it’s a more pragmatic approach than 3G’s: data-centric devices will be adopted first, rather than a large number of phones. As network coverage and service plans satisfy market expectations, a variety of specialized consumer electronics devices with the ability to connect anywhere will emerge.”
Monday, August 3, 2009
Enterprise FMC to grow at 27pc CAGR reaching over 27mn by 2014
NEW YORK, USA:In a new study from ABI Research, FMC (Fixed-Mobile Convergence) handset voice connections for business customers are forecast to rise from 6.3 million in 2009 to more than 27 million by 2014.
FMC voice connections include Wi-Fi FMC connections as well as cellular FMC connections using picocells and femtocells.
However, its not just femtocells that are driving up enterprise FMC connections. Says practice director Dan Shey, “While femtocells have been all the rage, dual-mode cellular/Wi-Fi phones will also increase enterprise FMC voice access.”
Indeed, Wi-Fi in smartphones will grow from a 45% attach rate in 2009 to a 90% attach rate in 2014. Business customers are the primary adopters of smartphones and with increased penetration of Wi-Fi smartphones, this change levels the playing field between cellular and Wi-Fi FMC. Previously, the knock against FMC solutions particularly for VoWi-Fi was the lack of Wi-Fi phones.
Another variable affecting the business FMC landscape is business customers accessing the web, watching videos and connecting to social networking sites for personal reasons. FMC solutions and smartphones provide IT managers with ways to manage these kinds of connections.
The wildcards for enterprise FMC are downloadable VoIP applications from companies such as Skype and Truphone. Says Shey, “Downloadable apps that offer VoIP connections over Wi-Fi or on unlimited cellular data plans may not be enterprise-grade for now.
However, their availability will change how we view VoIP on cell phones, leading to some interesting opportunities and challenges for the mobile supply chain.
FMC voice connections include Wi-Fi FMC connections as well as cellular FMC connections using picocells and femtocells.
However, its not just femtocells that are driving up enterprise FMC connections. Says practice director Dan Shey, “While femtocells have been all the rage, dual-mode cellular/Wi-Fi phones will also increase enterprise FMC voice access.”
Indeed, Wi-Fi in smartphones will grow from a 45% attach rate in 2009 to a 90% attach rate in 2014. Business customers are the primary adopters of smartphones and with increased penetration of Wi-Fi smartphones, this change levels the playing field between cellular and Wi-Fi FMC. Previously, the knock against FMC solutions particularly for VoWi-Fi was the lack of Wi-Fi phones.
Another variable affecting the business FMC landscape is business customers accessing the web, watching videos and connecting to social networking sites for personal reasons. FMC solutions and smartphones provide IT managers with ways to manage these kinds of connections.
The wildcards for enterprise FMC are downloadable VoIP applications from companies such as Skype and Truphone. Says Shey, “Downloadable apps that offer VoIP connections over Wi-Fi or on unlimited cellular data plans may not be enterprise-grade for now.
However, their availability will change how we view VoIP on cell phones, leading to some interesting opportunities and challenges for the mobile supply chain.
Tuesday, July 28, 2009
'One size fits all' won't play in global SMB Wi-Fi markets
NEW YORK, USA: The number of small-medium businesses in the world is expected to reach 330 million in 2014. Outside North America these smaller enterprises (98 percent of which employ fewer than 100 people) account for more than 90 percent of all businesses.
Many of these firms are candidates for Wi-Fi networking; but according to a recent study from ABI Research, vendors addressing these markets must take regional conditions and tastes into account.
"When it comes to opportunities in wireless LAN equipment markets, these international SMBs represent the greenest of remaining green fields," comments ABI Research vice president Stan Schatt.
"The winning vendors will be those that develop equipment that meets the particular needs of those companies, at acceptable price points. Small businesses demand products that are designed specifically for them. You can’t just repackage enterprise products."
In Europe, the best SMB opportunities for WLAN equipment vendors are services companies with 20-99 employees. Eastern Europe is particularly attractive: Russia and Poland have very high PC penetration but their wired infrastructure is not as developed as in Western Europe.
The most intriguing SMB WLAN equipment opportunity in the Asia-Pacific region is India. In particular, there is a predominance of very small manufacturing companies that are green field targets for WLANs as their only network, since Ethernet cabling is not widespread.
In Latin America, where ABI Research believes the Wi-Fi penetration rate is still only around 25% in mid-sized businesses, the opportunity is found not just in the services sector, but in industrial settings as well.
Many of these firms are candidates for Wi-Fi networking; but according to a recent study from ABI Research, vendors addressing these markets must take regional conditions and tastes into account.
"When it comes to opportunities in wireless LAN equipment markets, these international SMBs represent the greenest of remaining green fields," comments ABI Research vice president Stan Schatt.
"The winning vendors will be those that develop equipment that meets the particular needs of those companies, at acceptable price points. Small businesses demand products that are designed specifically for them. You can’t just repackage enterprise products."
In Europe, the best SMB opportunities for WLAN equipment vendors are services companies with 20-99 employees. Eastern Europe is particularly attractive: Russia and Poland have very high PC penetration but their wired infrastructure is not as developed as in Western Europe.
The most intriguing SMB WLAN equipment opportunity in the Asia-Pacific region is India. In particular, there is a predominance of very small manufacturing companies that are green field targets for WLANs as their only network, since Ethernet cabling is not widespread.
In Latin America, where ABI Research believes the Wi-Fi penetration rate is still only around 25% in mid-sized businesses, the opportunity is found not just in the services sector, but in industrial settings as well.
Monday, July 27, 2009
Mobile handset inventories bulk up
NEW YORK, USA: The handset vendors are still telling us it is a frosty market out there but there is a spring in their step as 2Q-2009 results start to pour in.
“269 million handsets were shipped in 2Q-2009,” says Jake Saunders, VP for Forecasting at ABI Research. “That bodes well for 2H-2009. Shipments should build sequentially in a constructive manner with 4Q-2009 potentially returning the industry to better sales form.”
North America may be struggling to shrug off its economic woes, but Asian economies have been lifted by regional stimulus packages and by an anticipation of improved retail sales conditions in the latter part of 2H-2009. ABI Research is revising downwards its forecast 2009 contraction to -7.5 percent from -8.1 percent (1.11 billion).
Samsung (19.4 percent) and LG (11.1 percent) did particularly well. LG notched up a 2.2 percent increase in percentage points, Samsung, 1.45 percent. Nokia staged a remarkable swing in fortunes to achieve a 1.67 percent percentage point increase to 38.3 percent. Nokia is doing all it can to get a number of smartphone models into the market.
It will be interesting to see how Nokia’s market share holds up in 2H-2009, as Samsung and LG have carried out major refreshes to their smartphone product lineups. Sony-Ericsson experienced a 0.56% percent point reduction in its market-share while Motorola and RIM also saw contractions.
“It is well documented that smartphones are proving to be one of the main engines of growth, but they are not just benefiting the Tier 1 players”, says practice director Kevin Burden.
“A number of Tier 3 vendors are also making headway in a competitive market, including Apple and HTC but also vendors such as Huawei and ZTE. While a consolidation is widely expected in the industry, it will not be happening in 2009.”
The pressures for consolidation may not necessarily come from tightening shipment volumes but also from greater integration of hardware, OS and applications development. ASPs for smartphones are higher than the overall average, and have supported R&D to date; but in such a competitive environment, the R&D pricetag can only go up.
“269 million handsets were shipped in 2Q-2009,” says Jake Saunders, VP for Forecasting at ABI Research. “That bodes well for 2H-2009. Shipments should build sequentially in a constructive manner with 4Q-2009 potentially returning the industry to better sales form.”
North America may be struggling to shrug off its economic woes, but Asian economies have been lifted by regional stimulus packages and by an anticipation of improved retail sales conditions in the latter part of 2H-2009. ABI Research is revising downwards its forecast 2009 contraction to -7.5 percent from -8.1 percent (1.11 billion).
Samsung (19.4 percent) and LG (11.1 percent) did particularly well. LG notched up a 2.2 percent increase in percentage points, Samsung, 1.45 percent. Nokia staged a remarkable swing in fortunes to achieve a 1.67 percent percentage point increase to 38.3 percent. Nokia is doing all it can to get a number of smartphone models into the market.
It will be interesting to see how Nokia’s market share holds up in 2H-2009, as Samsung and LG have carried out major refreshes to their smartphone product lineups. Sony-Ericsson experienced a 0.56% percent point reduction in its market-share while Motorola and RIM also saw contractions.
“It is well documented that smartphones are proving to be one of the main engines of growth, but they are not just benefiting the Tier 1 players”, says practice director Kevin Burden.
“A number of Tier 3 vendors are also making headway in a competitive market, including Apple and HTC but also vendors such as Huawei and ZTE. While a consolidation is widely expected in the industry, it will not be happening in 2009.”
The pressures for consolidation may not necessarily come from tightening shipment volumes but also from greater integration of hardware, OS and applications development. ASPs for smartphones are higher than the overall average, and have supported R&D to date; but in such a competitive environment, the R&D pricetag can only go up.
Friday, July 17, 2009
Entry-level mobile phone markets to enjoy 24 percent CAGR through 2014
NEW YORK, USA: The world’s largest underserved markets for mobile communications are in developing nations and regions. Asia, Africa, Latin America all have vast potential, but formidable barriers stand in the way.
Among the most immediate: the low disposable income of most of the population. Low cost and ultra-low cost (ULCH) handsets are seen as part of the solution to that problem, and according to a new study from ABI Research the two categories together will see a CAGR of 24 percent over the next five years.
"The price of a ULCH handset is widely seen as critical to the tipping point for mass adoption in emerging markets,” says industry analyst Michael Morgan. Handsets are rarely subsidized in emerging markets.
"The GSM Association has pegged the maximum desirable ULCH handset price at $25 through next year and at $20 for 2011-2012. Morgan extends that curve: “I believe in 2013-2014 the top price for a ULCH phone will be no more than $15, which is feasible because some handset models are hitting that price today.”
Other inducements fostering uptake of mobile services in emerging markets include value-added data services using locally relevant content. Also helping: more enlightened attitudes among government regulators towards reducing taxes and tariffs on handsets and services.
However, emerging markets do present significant challenges. For handset vendors, the low prices mean margins so thin that profitability demands major economies of scale. (Fortunately some of these populous countries lend new meaning to the words “mass market.”)
Vendors must also control a wide IP portfolio and manufacture locally to control royalty, import and labor costs. The research shows that on all these counts, Nokia is the out-and-out market leader.
Morgan concludes, "Entry level handsets must deliver high value to low-income emerging market consumers who want good quality at low cost."
Among the most immediate: the low disposable income of most of the population. Low cost and ultra-low cost (ULCH) handsets are seen as part of the solution to that problem, and according to a new study from ABI Research the two categories together will see a CAGR of 24 percent over the next five years.
"The price of a ULCH handset is widely seen as critical to the tipping point for mass adoption in emerging markets,” says industry analyst Michael Morgan. Handsets are rarely subsidized in emerging markets.
"The GSM Association has pegged the maximum desirable ULCH handset price at $25 through next year and at $20 for 2011-2012. Morgan extends that curve: “I believe in 2013-2014 the top price for a ULCH phone will be no more than $15, which is feasible because some handset models are hitting that price today.”
Other inducements fostering uptake of mobile services in emerging markets include value-added data services using locally relevant content. Also helping: more enlightened attitudes among government regulators towards reducing taxes and tariffs on handsets and services.
However, emerging markets do present significant challenges. For handset vendors, the low prices mean margins so thin that profitability demands major economies of scale. (Fortunately some of these populous countries lend new meaning to the words “mass market.”)
Vendors must also control a wide IP portfolio and manufacture locally to control royalty, import and labor costs. The research shows that on all these counts, Nokia is the out-and-out market leader.
Morgan concludes, "Entry level handsets must deliver high value to low-income emerging market consumers who want good quality at low cost."
Wednesday, July 15, 2009
170mn mobile subscribers will make domestic P2P payments in 2011
NEW YORK, USA: If you think mobile banking is becoming popular, consider the market for mobile-enabled person-to-person payments.
Nearly three times as many consumers globally will use their mobile phones to make domestic person to person payments than those who will use their mobile phones to conduct traditional banking functions by the end of 2011, according to an ABI Research forecast.
“The developing world is embracing mobile domestic person to person payments with enthusiasm wherever they are offered,” says senior analyst Mark Beccue. “It is becoming the first financial service for previously ‘unbanked’ people, and may make a real contribution towards lifting them out of poverty.”
In addition to gaining an ideal introductory financial service, banks –- with the help of Mobile Network Operators (MNOs) –- are extending their reach. Traditional banks have had a hard time supporting bricks-and-mortar operations in many developing regions. Mobile gives them a chance to extend their banking services without having to build major infrastructure.
There has to be an interface between a number on a screen and the real, cash economy. So in many such regions, MNOs’ retail agents are becoming “stored value operators,” and conduits for local bankers.
However, there are some impediments to this market’s development. “Growth of mobile financial services in the developing world is sometimes hindered by regulatory barriers,” says Beccue.
“Every country has different banking rules. Some are more sophisticated, some less. Whoever is trying to put such a financial ecosystem together may have a lot of hoops to jump through. But they are increasingly successful despite the obstacles.”
Nearly three times as many consumers globally will use their mobile phones to make domestic person to person payments than those who will use their mobile phones to conduct traditional banking functions by the end of 2011, according to an ABI Research forecast.
“The developing world is embracing mobile domestic person to person payments with enthusiasm wherever they are offered,” says senior analyst Mark Beccue. “It is becoming the first financial service for previously ‘unbanked’ people, and may make a real contribution towards lifting them out of poverty.”
In addition to gaining an ideal introductory financial service, banks –- with the help of Mobile Network Operators (MNOs) –- are extending their reach. Traditional banks have had a hard time supporting bricks-and-mortar operations in many developing regions. Mobile gives them a chance to extend their banking services without having to build major infrastructure.
There has to be an interface between a number on a screen and the real, cash economy. So in many such regions, MNOs’ retail agents are becoming “stored value operators,” and conduits for local bankers.
However, there are some impediments to this market’s development. “Growth of mobile financial services in the developing world is sometimes hindered by regulatory barriers,” says Beccue.
“Every country has different banking rules. Some are more sophisticated, some less. Whoever is trying to put such a financial ecosystem together may have a lot of hoops to jump through. But they are increasingly successful despite the obstacles.”
Thursday, July 9, 2009
$3.3bn to be spent on LTE base stations in 2011
NEW YORK, USA: Wireless operators will spend about $3.3 billion building LTE (Long Term Evolution) base stations in 2011, according to the most recent study of LTE from ABI Research.
That expenditure will have purchased some 142,000 base stations worldwide. LTE base station equipment spending is expected to rise sharply between 2011and the end of 2012.
“Vendors will be shipping base station equipment in significant quantities in 2010 ahead of limited trials that typically last about a year, followed by full commercial launches,” says senior analyst Nadine Manjaro.
“Many operators have been talking about re-use of existing equipment, but ABI Research understands that while there may be sharing of masts and cabinets most of those 142,000 base stations will have completely new baseband and RF components, because operators will generally try to keep the new LTE networks separate from their legacy networks.”
ABI Research vice president Jake Saunders also points out that, “Due to LTE’s propagation characteristics and higher frequencies, operators will eventually have to deploy extra sites to iron out gaps in coverage.”
That is good news for base station equipment vendors. Some contracts have already been announced: as noted previously, Alcatel-Lucent, Ericsson, and Starent are the winners of a major set of contracts from Verizon Wireless.
In Japan, NTT-DOCOMO, in addition to tapping the world’s largest network infrastructure supplier, Ericsson, is also supporting local vendors NEC and Fujitsu.
TeliaSonera has chosen Ericsson and Huawei, while its fellow Scandinavian operators Tele2 and Telenor are also thought likely to settle on Huawei, which is proving a formidable competitor.
“There may be a new opportunity here for Nokia Siemens Networks,” notes Manjaro. “Nortel was early to market with LTE base station equipment, but its bankruptcy preempted that market push. With NSN’s acquisition of Nortel’s LTE assets, it is well placed to benefit from that early market presence.”
That expenditure will have purchased some 142,000 base stations worldwide. LTE base station equipment spending is expected to rise sharply between 2011and the end of 2012.
“Vendors will be shipping base station equipment in significant quantities in 2010 ahead of limited trials that typically last about a year, followed by full commercial launches,” says senior analyst Nadine Manjaro.
“Many operators have been talking about re-use of existing equipment, but ABI Research understands that while there may be sharing of masts and cabinets most of those 142,000 base stations will have completely new baseband and RF components, because operators will generally try to keep the new LTE networks separate from their legacy networks.”
ABI Research vice president Jake Saunders also points out that, “Due to LTE’s propagation characteristics and higher frequencies, operators will eventually have to deploy extra sites to iron out gaps in coverage.”
That is good news for base station equipment vendors. Some contracts have already been announced: as noted previously, Alcatel-Lucent, Ericsson, and Starent are the winners of a major set of contracts from Verizon Wireless.
In Japan, NTT-DOCOMO, in addition to tapping the world’s largest network infrastructure supplier, Ericsson, is also supporting local vendors NEC and Fujitsu.
TeliaSonera has chosen Ericsson and Huawei, while its fellow Scandinavian operators Tele2 and Telenor are also thought likely to settle on Huawei, which is proving a formidable competitor.
“There may be a new opportunity here for Nokia Siemens Networks,” notes Manjaro. “Nortel was early to market with LTE base station equipment, but its bankruptcy preempted that market push. With NSN’s acquisition of Nortel’s LTE assets, it is well placed to benefit from that early market presence.”
Wednesday, July 8, 2009
Cloud computing will radically transform mobile applications
NEW YORK, USA: Apple’s iPhone sparked an explosion in consumer awareness of mobile applications. New applications are proliferating and “app stores” are springing up. But most of today’s applications need handsets with robust computing power, limiting their potential market.
However a new architecture based on software running in the cloud will drastically change the way mobile applications are developed, acquired, and used. According to a new study from ABI Research, this will be a profoundly disruptive development that could eclipse the current mobile application model by 2014, delivering revenue of nearly $20 billion annually by the end of that year.
“Mobile application developers today face the challenge of multiple mobile operating systems,” says senior analyst Mark Beccue. “Either they must write for just one OS, or create many versions of the same application. More sophisticated apps require significant processing power and memory in the handset.
"Using Web development, applications can run on servers instead of locally, so handset requirements can be greatly reduced and developers can create just one version of an application. This trend is in its infancy today, but ABI Research believes that eventually it will become the prevailing model for mobile applications.”
This approach is not without challenges, chief among which is intermittent network availability. A cloud-based application stops working if you lose your connection. However new programming languages such as HTML 5 will enable data caching on the handset, allowing work to continue until cellular signal is restored.
“Cloud computing will bring unprecedented sophistication to mobile applications,” Beccue notes. “To mention just a few examples, business users will benefit from collaboration and data sharing apps. Personal users will gain from remote access apps allowing them to monitor home security systems, PCs or DVRs, and from social networking mashups that let them share photos and video or incorporate their phone address books and calendars.”
However a new architecture based on software running in the cloud will drastically change the way mobile applications are developed, acquired, and used. According to a new study from ABI Research, this will be a profoundly disruptive development that could eclipse the current mobile application model by 2014, delivering revenue of nearly $20 billion annually by the end of that year.
“Mobile application developers today face the challenge of multiple mobile operating systems,” says senior analyst Mark Beccue. “Either they must write for just one OS, or create many versions of the same application. More sophisticated apps require significant processing power and memory in the handset.
"Using Web development, applications can run on servers instead of locally, so handset requirements can be greatly reduced and developers can create just one version of an application. This trend is in its infancy today, but ABI Research believes that eventually it will become the prevailing model for mobile applications.”
This approach is not without challenges, chief among which is intermittent network availability. A cloud-based application stops working if you lose your connection. However new programming languages such as HTML 5 will enable data caching on the handset, allowing work to continue until cellular signal is restored.
“Cloud computing will bring unprecedented sophistication to mobile applications,” Beccue notes. “To mention just a few examples, business users will benefit from collaboration and data sharing apps. Personal users will gain from remote access apps allowing them to monitor home security systems, PCs or DVRs, and from social networking mashups that let them share photos and video or incorporate their phone address books and calendars.”
Saturday, June 27, 2009
366,000 picocells to be deployed by 2013
LONDON, UK: Picocells -– the “big brothers” of the increasingly familiar femtocells -– have not enjoyed rapid or massive adoption so far.
However, ABI Research estimates that in 2013, there will have been cumulative deployments of about 366,000 picocell devices worldwide. While not a huge number in itself, that represents a 38 percent compound annual growth rate over the years from 2008.
“The key to greater market acceptance for picocells lies in their increasing similarity to femtocells in terms of their setup and cost” says senior analyst Aditya Kaul.
“However, unlike femtocells which are largely consumer-focused, next-generation picocells will continue to be targeted at the enterprise market, offering rugged, carrier-grade feature sets. There is also an understanding that many of these new picocells will still require a truck roll for deployment, although offering a lower cost device than the traditional picocell.”
The most suitable market is comprised of establishments with between 20 and 100 employees. “Large buildings and corporate campuses tend to deploy distributed antenna systems (DAS),” says Kaul.
“Operators haven’t really succeeded yet in delivering a cost-efficient system for small-medium offices. Within the 20-100 employee market our research identified, the 20-49 employee group will see competition between picocells and domestic femtocells deployed in grids. The sweet spot for picocells is in the 50-100 employee segment. One good example is satellite offices of larger corporations that have a corporate account covering multiple branches: they could use next-generation picocells in a cost-effective way.”
However, ABI Research estimates that in 2013, there will have been cumulative deployments of about 366,000 picocell devices worldwide. While not a huge number in itself, that represents a 38 percent compound annual growth rate over the years from 2008.
“The key to greater market acceptance for picocells lies in their increasing similarity to femtocells in terms of their setup and cost” says senior analyst Aditya Kaul.
“However, unlike femtocells which are largely consumer-focused, next-generation picocells will continue to be targeted at the enterprise market, offering rugged, carrier-grade feature sets. There is also an understanding that many of these new picocells will still require a truck roll for deployment, although offering a lower cost device than the traditional picocell.”
The most suitable market is comprised of establishments with between 20 and 100 employees. “Large buildings and corporate campuses tend to deploy distributed antenna systems (DAS),” says Kaul.
“Operators haven’t really succeeded yet in delivering a cost-efficient system for small-medium offices. Within the 20-100 employee market our research identified, the 20-49 employee group will see competition between picocells and domestic femtocells deployed in grids. The sweet spot for picocells is in the 50-100 employee segment. One good example is satellite offices of larger corporations that have a corporate account covering multiple branches: they could use next-generation picocells in a cost-effective way.”
Tuesday, June 23, 2009
Global mobile services revenue to grow at least 1.2pc annually through 2014
NEW YORK, USA: Unemployment has risen dramatically from just one year ago. The result is a recalibration of consumer purchasing and usage behaviors, which will affect all industries, including the normally recession-proof mobile services industry.
Yet despite current market uncertainties, a new ABI Research study shows that even under the worst recovery scenarios, mobile services revenues will continue to grow at nearly 1.2 percent through 2014, a 0.5 percent loss over pre-crisis conditions.
Dan Shey, Practice director, ABI Research, said: “A long economic recovery places pressures on mobile operators to compete on price, particularly with undifferentiated voice services. Mobile data services allow operators to counter that pressure. However each region is different. Operators should create strategies that lead customers to maintain ‘nice-to-have’ data services or encourage addition of more utilitarian ones.”
Economically, North America has been hit hardest. But mobile data services growth will exceed 8 percent through 2014 even in the worst recovery scenario and will shield mobile services revenues against growing voice pricing pressures.
While stimulus packages are helping power the Asia Pacific region through the financial crisis and limiting unemployment loss, regional operators derive a large portion of their data revenues from content downloads. These products would be the first casualties of an extended recession, particularly with APAC’s substantial prepay base. But operators can mitigate the impacts of the depressed conditions through appropriate messaging and offer management.
Shey added: “Mobile operators need to stress the utility of mobile services and pursue appropriate services personalization initiatives that allow customers to buy and use services in ways that best suit their needs. Business customers should also be a target segment as businesses consider mobile a way to lower costs and increase competitiveness.”
Combining survey data with regional economic and mobile demographic factors, ABI Research’s ”World Financial Crisis and the Mobile Services Market” provides a quantitative view of potential changes in the mobile services market based on three possible economic recovery scenarios. Forecast analysis is provided for changes in postpaid and prepaid subscriber adoption, voice usage and pricing, SMS usage and pricing, and mobile data revenues. Analysis is provided across seven different world regions.
Yet despite current market uncertainties, a new ABI Research study shows that even under the worst recovery scenarios, mobile services revenues will continue to grow at nearly 1.2 percent through 2014, a 0.5 percent loss over pre-crisis conditions.
Dan Shey, Practice director, ABI Research, said: “A long economic recovery places pressures on mobile operators to compete on price, particularly with undifferentiated voice services. Mobile data services allow operators to counter that pressure. However each region is different. Operators should create strategies that lead customers to maintain ‘nice-to-have’ data services or encourage addition of more utilitarian ones.”
Economically, North America has been hit hardest. But mobile data services growth will exceed 8 percent through 2014 even in the worst recovery scenario and will shield mobile services revenues against growing voice pricing pressures.
While stimulus packages are helping power the Asia Pacific region through the financial crisis and limiting unemployment loss, regional operators derive a large portion of their data revenues from content downloads. These products would be the first casualties of an extended recession, particularly with APAC’s substantial prepay base. But operators can mitigate the impacts of the depressed conditions through appropriate messaging and offer management.
Shey added: “Mobile operators need to stress the utility of mobile services and pursue appropriate services personalization initiatives that allow customers to buy and use services in ways that best suit their needs. Business customers should also be a target segment as businesses consider mobile a way to lower costs and increase competitiveness.”
Combining survey data with regional economic and mobile demographic factors, ABI Research’s ”World Financial Crisis and the Mobile Services Market” provides a quantitative view of potential changes in the mobile services market based on three possible economic recovery scenarios. Forecast analysis is provided for changes in postpaid and prepaid subscriber adoption, voice usage and pricing, SMS usage and pricing, and mobile data revenues. Analysis is provided across seven different world regions.
Thursday, April 30, 2009
Managed telepresence services to exceed $360mn in 2011
NEW YORK, USA: Telepresence, a kind of video conference providing the realistic sensation that all participants are actually in the same room, is a rapidly growing industry. The technology, however, is very expensive -- prohibitively so, for the majority of its potential users. Hence there is a growing trend toward offering telepresence as a managed service.
According to ABI Research vice president Stan Schatt, “The growth of managed telepresence services raises the prospect that soon virtually anybody, from multinational corporations to private individuals, may be able to benefit from this remarkable audiovisual experience.”
What makes telepresence more useful than phones, email, or ordinary videoconferencing? The key is the realism: in complex business negotiations body language, eye contact, and vocal realism are still critical. And for individuals communicating with distant loved-ones, there’s no substitute.
Today, telepresence managed services are still primarily used by large enterprises. But it won’t be long before small-medium businesses and eventually ordinary citizens can use the service. Schatt believes that “The price for telepresence managed services will eventually come down to where any mid-level manager can do it.”
There will also be public facilities, often in hotels or conference centers, where one can use telepresence for a fee. “That’s going to be very attractive to small businesses,” says Schatt. “Take a small business that has a supply chain relationship with an Asian company. The fee for an hour in a telepresence room is always going to be less than the cost of sending a key executive all the way to China. And fewer air miles are better for the environment.”
Many telepresence systems today are still not easily interoperable: another reason to let a service provider handle the technicalities. “We’re already seeing AT&T, BT, and Nortel being very active in this area,” says Schatt, “and India’s Tata Communications has started offering telepresence facilities in partnership with Cisco.”
According to ABI Research vice president Stan Schatt, “The growth of managed telepresence services raises the prospect that soon virtually anybody, from multinational corporations to private individuals, may be able to benefit from this remarkable audiovisual experience.”
What makes telepresence more useful than phones, email, or ordinary videoconferencing? The key is the realism: in complex business negotiations body language, eye contact, and vocal realism are still critical. And for individuals communicating with distant loved-ones, there’s no substitute.
Today, telepresence managed services are still primarily used by large enterprises. But it won’t be long before small-medium businesses and eventually ordinary citizens can use the service. Schatt believes that “The price for telepresence managed services will eventually come down to where any mid-level manager can do it.”
There will also be public facilities, often in hotels or conference centers, where one can use telepresence for a fee. “That’s going to be very attractive to small businesses,” says Schatt. “Take a small business that has a supply chain relationship with an Asian company. The fee for an hour in a telepresence room is always going to be less than the cost of sending a key executive all the way to China. And fewer air miles are better for the environment.”
Many telepresence systems today are still not easily interoperable: another reason to let a service provider handle the technicalities. “We’re already seeing AT&T, BT, and Nortel being very active in this area,” says Schatt, “and India’s Tata Communications has started offering telepresence facilities in partnership with Cisco.”
Monday, April 27, 2009
Mobile handset market stays afloat with 258 million shipped in 1Q-2009: ABI Research
NEW YORK, USA: Despite tough corporate and unemployment news making the headlines, the mobile handset-buying public did not head to the hills during the first quarter of 2009.
Handset vendors had shipped 258 million handsets by the end of the quarter. Although that represents an 11% year-over-year decline, the result significantly exceeded the previous forecast of 253.5 million. “Green shoots are sprouting,” is how ABI Research vice president Jake Saunders describes the latest figures.
Distributors reduced their inventories in 4Q-2008 and 1Q-2009 as they prepared for economic Armageddon but the market did not take another “leg down” in 1Q-2009. ABI Research has introduced a note of mild optimism in its handset forecasts for YE-2009, revising them from -8.4 percent to -8 percent. Saunders notes, “This will not be a V-shaped recovery. 2Q-2008 was a fairly strong quarter for handset sales so handset shipments for 2Q-2009 are going to report a -10 percent decline YoY, but QoQ, they should show improvement.”
“As always there are winners and losers,” comments practice director Kevin Burden. “Samsung and LG demonstrated healthy gains to take their market shares to 17.8 percent and 8.8 percent, respectively. Another star performer was RIM which raised its share to 3 percent due largely to the success of its Blackberry Bold.
It is a little curious that Apple’s market share is just 1.5 percent given the success of its AppStore. As popular as the iPhone3G has been, increased competition in the touch-screen segment and a lack of product differentiation may be dampening demand. ABI Research expects that by 2H-2009 the iPhone3G will have one or more siblings. That will allow Apple to accelerate growth.
Nokia was beaten out by SonyEricsson for the dubious distinction of showing the largest contractions (their shares now stand at 36.2 percent and 5.6 percent). Nokia will breathe a sigh of relief once its latest smartphone, the N97, enters the market. Nokia has had a fair amount of success with the E71 but needs to beef up its touch-screen product lines.
While Sony-Ericsson has the Experia smartphone line-up, the firm’s exposure to the feature phone segment was squeezed more than other handset sectors. While feature phones serve many needs in the market, operators have been especially keen to snap up smartphone stock and were cooler on the ultra-low cost and feature phone orders.
Despite the positive signs, says ABI Research, the industry should be cautious. The IMF has issued another sharp downgrade to its global outlook. Unemployment figures are also likely to continue creeping up. Buyers in the developed world are still concerned about debt and job security. Developing economies are expected to take a hit on the credit side which could have knock-on consequences on credit lines for purchases and stock levels.
Handset vendors had shipped 258 million handsets by the end of the quarter. Although that represents an 11% year-over-year decline, the result significantly exceeded the previous forecast of 253.5 million. “Green shoots are sprouting,” is how ABI Research vice president Jake Saunders describes the latest figures.
Distributors reduced their inventories in 4Q-2008 and 1Q-2009 as they prepared for economic Armageddon but the market did not take another “leg down” in 1Q-2009. ABI Research has introduced a note of mild optimism in its handset forecasts for YE-2009, revising them from -8.4 percent to -8 percent. Saunders notes, “This will not be a V-shaped recovery. 2Q-2008 was a fairly strong quarter for handset sales so handset shipments for 2Q-2009 are going to report a -10 percent decline YoY, but QoQ, they should show improvement.”
“As always there are winners and losers,” comments practice director Kevin Burden. “Samsung and LG demonstrated healthy gains to take their market shares to 17.8 percent and 8.8 percent, respectively. Another star performer was RIM which raised its share to 3 percent due largely to the success of its Blackberry Bold.
It is a little curious that Apple’s market share is just 1.5 percent given the success of its AppStore. As popular as the iPhone3G has been, increased competition in the touch-screen segment and a lack of product differentiation may be dampening demand. ABI Research expects that by 2H-2009 the iPhone3G will have one or more siblings. That will allow Apple to accelerate growth.
Nokia was beaten out by SonyEricsson for the dubious distinction of showing the largest contractions (their shares now stand at 36.2 percent and 5.6 percent). Nokia will breathe a sigh of relief once its latest smartphone, the N97, enters the market. Nokia has had a fair amount of success with the E71 but needs to beef up its touch-screen product lines.
While Sony-Ericsson has the Experia smartphone line-up, the firm’s exposure to the feature phone segment was squeezed more than other handset sectors. While feature phones serve many needs in the market, operators have been especially keen to snap up smartphone stock and were cooler on the ultra-low cost and feature phone orders.
Despite the positive signs, says ABI Research, the industry should be cautious. The IMF has issued another sharp downgrade to its global outlook. Unemployment figures are also likely to continue creeping up. Buyers in the developed world are still concerned about debt and job security. Developing economies are expected to take a hit on the credit side which could have knock-on consequences on credit lines for purchases and stock levels.
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