Mobile operators cash in on branded handset bonanza

 

Personalised phones to be worth US$10bn this year.

Mobile operators will make approximately Us$10.7bn worldwide through sales of private branded handsets in 2007, market watchers have predicted.

The figure represents an almost 23 percent jump compared with the US$8.7bn earned in 2006, according to ABI Research.

The analyst firm attributes the expected hike to factors including handset delivery delays, greater customisation needs, increasing demand for low cost handsets, and the growing importance of emerging markets.

ABI Research analyst Shailendra Pandey said: "In the past, private branded handsets were mostly high-end feature phones and smartphones supplied to operators by the likes of HTC, Sharp and Quanta.

"Now, the growing demand for low-cost and ultra-low-cost handsets means that operators also have opportunities to provide private branded handsets in this segment.

"They can partner with selected local manufacturers which will be able to address the low-cost market by avoiding import costs and benefiting from the skill sets and cheap labour of indigenous work forces."

In addition to having handsets from leading vendors such as Nokia and Motorola in their portfolios, operators are looking for opportunities to forge partnerships with local manufacturers which are more willing to accept operators' customisation and branding needs, ABI noted.

One example is Vodafone's well known agreement with Huawei to supply 3G handsets for its operations in 20 global markets, and the more recently announced partnership with ZTE for 2G handsets.

ABI estimates that over 80 percent of new mobile phone subscribers in the next five years will be from the emerging markets of Asia, Africa and Latin America.

"Asia is now the most important region for demand, supply and competition in the handset industry, and Asian suppliers have significant cost advantages over suppliers from other regions," the analyst firm stated.

ABI Research expects the market for operator private branded handsets to grow to over 127 million handset shipments by 2011.

Copyright ©v3.co.uk


Mobile operators cash in on branded handset bonanza
 
 
 
Top Stories
Microsoft confirms Australian Azure launch
Available from next week.
 
NBN Co names first 140 FTTN sites
National trial extended.
 
Cloud, big data propel bank CISOs into the boardroom
And this time, they are welcome.
 
 
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
  25%
 
Sourcing and strategy
  13%
 
IT infrastructure (servers, storage, networking)
  22%
 
End user computing (desktops, mobiles, apps)
  14%
 
Software development
  27%
TOTAL VOTES: 262

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

   |   View results
Yes
  62%
 
No
  38%
TOTAL VOTES: 82

Vote