European mobile phone growth 'unsustainable'

 

IDC reports that saturation levels have passed 100 per cent.

IDC reports that saturation levels have passed 100 per cent.

The western European market for traditional mobile phones and converged device handsets grew by seven per cent year on year in the second quarter of 2006 as shipments reached 41.4 million, analysts reported today.

But this steady growth in demand is unsustainable, according to the latest market data from IDC, as subscriber saturation in most western European markets moves beyond 100 per cent.

IDC noted that converged devices consistently outperformed traditional mobile phones in recent quarters in terms of growth.

But the second quarter of 2006 saw converged device growth only marginally exceed that of traditional mobile phones as portfolio transitioning and device delays inhibited growth.

IDC believes this further points to the strength of the feature phone in western Europe.

"The advantages of an open evolved operating system for manufacturers, operators and developers with regard to cost, time to market and rich customisation are undeniable," said Andrew Brown, program manager for European mobile devices and computing at IDC.

"However, from the perspective of most consumers the advanced capability is still either deemed unnecessary or lies invisible behind considerations such as form factor and multimedia capability."

The result is that consumer-centric converged devices are competing directly with high-end feature phones which, in terms of the most visible technical specifications such as cameras, are generally deemed indistinct from smartphones by most consumers.

"Nokia is undoubtedly making substantial progress with the S60 in the consumer space. But the lack of commercial success other licensees have had with the platform is indicative of the dilemma faced by many vendors," said Geoff Blaber, senior research analyst for European mobile devices at IDC.

"With demand for feature phones still strong the prospect of high initial costs before the advantages of 'platformisation' can be realised is an inhibitor to widespread migration to an evolved OS for consumer devices.

"Technology demands will command the move in the longer term, but the migration is proving slower than vendors, operators and commentators anticipated."

Copyright ©v3.co.uk


European mobile phone growth 'unsustainable'
 
 
 
Top Stories
Australia's leaders agree to end GST-free online goods
Gerry Harvey may finally get his way.
 
Cray to build Australia's biggest supercomputer
$77m for 'gamechanger' hardware.
 
Inside CenITex's years of tumult
CEO determined to earn the hearts, minds and servers of Vic govt.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Microsoft reveals Microsoft Send, a new enterprise chat app to rival Slack
Jul 27, 2015
Microsoft Send is MSN Messenger for grownups, and you could be using it at work very soon
Developers offered $500,000 grants to find HoloLens uses
Jul 8, 2015
Can augmented-reality end up in business?
Microsoft Tossup: The planning app for unorganised groups of friends
Jul 8, 2015
App allows friends to research venues, vote on plans and chat. And depending on how you run your ...
Windows 10 drops 29 July... but only for some
Jul 6, 2015
If you've reserved your copy of Windows 10 and are keenly awaiting its 29 July release, don't ...
Xerocon is heading to Melbourne!
Jul 1, 2015
We're not saying Xero is our FAVOURITE or anything, but Xero's 2015 Xerocon conference is being ...
Latest Comments
Polls
Should law enforcement be able to buy and use exploits?



   |   View results
Yes
  14%
 
No
  51%
 
Only in special circumstances
  16%
 
Yes, but with more transparency
  19%
TOTAL VOTES: 657

Vote