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
Meet FABACUS, Westpac's first computer
GE225 operators celebrate gold anniversary.
 
NSW Govt gets ready to throw out the floppy disks
[Opinion] Dominic Perrottet says its time for government to catch up.
 
iiNet facing new copyright battle with Hollywood
Fighting to protect customer details.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Do you direct debit customers? Read this
Oct 10, 2014
Authorities have been targeting direct debit practices with iiNet and Dodo receiving formal ...
Optus expands 4G coverage
Oct 10, 2014
If you rely on an Optus phone for work you might be interested to know that there are now 200 ...
Microsoft Office is now free for some charities
Oct 10, 2014
Microsoft has announced that eligible Australian non-profit organisations and charities can now ...
Vodafone lights up 4G in Adelaide
Oct 9, 2014
Live and work in Adelaide? Vodafone has switched on its 4G network in the city and suburbs.
Next year tradies will be able to take payments using ingogo
Oct 3, 2014
Ingogo is going to provide a card payment service for Xero users.
Latest Comments
Polls
In which area is your IT shop hiring the most staff?




   |   View results
IT security and risk
  26%
 
Sourcing and strategy
  12%
 
IT infrastructure (servers, storage, networking)
  22%
 
End user computing (desktops, mobiles, apps)
  15%
 
Software development
  26%
TOTAL VOTES: 333

Vote
Would your InfoSec team be prepared to share threat data with the Australian Government?

   |   View results
Yes
  57%
 
No
  43%
TOTAL VOTES: 138

Vote