U P DAT E
CONVERGENCE UPDATE
prospects in these regions are vendors to prepare strong strate- to 1.298 billion, and Google) is a trend that
still very high. gies to tap into this lucrative ending 2013 at sales will help vendors to
market. A number of vendors of 1.552 billion sustain revenue growth
Smartphones and
are increasing their involve- · overall, the mobile hand- · in emerging markets,
non-Smartphones
ment in open mobile terminal sets market will undergo sales value in the
software, which is a core some radical changes and handsets market will
Informa also argues that the foundation in the development will be controlled less continue to grow
growth in value of the mobile of Smartphone devices. Open and less by the top five significantly, boosted
phone market will be driven by source will play an essential vendors who currently by increasing sales of
the Smartphone segment, which role in bringing Smartphones to hold an impressive feature phones in BRIC
will see double-digit annual the mass market. A number of 85% market share and Africa. Subscribers
growth until the final year of the mobile open source foundations · Smartphones will in these regions will
forecast period. The annual value have been created within the represent 47% of the enter first, second
of non-Smartphones will register last two years; including the value of the mobile and third replacement
almost at zero growth until 2011, Symbian Foundation (SF), the handsets market in 2013 phases, which means
partly due to the aggressive Open Handset Alliance (OHA), and this percentage could they will be increas-
migration of subscribers in devel- and the Linux in Mobile (LiMo) be as high as 60% in ingly migrated from
oped markets to Smartphones Foundation. Virtually all OEMs some developed regions basic phones to more
with an adoption level exceeding and the leading operators are · open source and attractive but slightly
60% in 2011. After that year, the actively working within these single-chip will play more expensive feature
value of non-Smartphone sales organisations and preparing a fundamental role in phones. A substantial
will start to grow again but this themselves to compete strongly bringing Smartphones contribution will
time driven by the uptake of 3G in this market segment. to the mass market also come for the
and 3.5G services in emerging “This development clearly · in developed countries, ultra-low cost (ULC)
markets such as China and India. indicates the industry is enter- growth in the value of devices targeting
ing a new era where product mobile handset sales new subscribers in
In developed regions, including differentiation will increasingly will drop to zero by 2010 emerging markets
North America, Western Europe shift from hardware to software. and may decline shortly · ASPs will stabilise
and Japan, growth in the value Vendors who have prepared thereafter. The growth at US$123 to US$130
generated by Smartphones will themselves for this radical in the value of the while average margins
be sharp, making up for the change will find themselves Smartphone market will will continue to decline
decline of the non-Smartphone in a better position than those only just make up for sharply. Vendors
market. In emerging markets, who continue to differentiate the sharp decline in non- will need to control
growth will continue to be their products on the basis of Smartphone revenues. In costs or face losing
driven by non-Smartphones. hardware,” judges Saadi. these regions, vendors market share. This
will have to create situation will push
The value of the global Other takeaways from the new opportunities if the market towards
Smartphone market will grow Informa report include: they want to maintain a period of strong
from almost US$39 billion · global handset sales revenue growth. The consolidation within
in 2007 to more than US$95 volumes are projected to creation of ecosystems the next five years
billion, 47% of the total handset increase 8.8% in 2008 bundling handsets sales at every level of the
market value in 2013. According to reach 1.217 billion, and associated services value chain including
to Informa this impressive continue growing in (for example, S60-Ovi, chipset manufac-
potential is encouraging device 2009, rising 6.6% iPhone-iTunes, Android- turers and OEMs.
CW LITE
03

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