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
CBA sued over frozen millions in IT bribery scandal
Eric Pulier's not-for profit lodges lawsuit in US.
 
NewSat's Lockheed Martin satellite contract cancelled
No certainty as to refinancing for struggling company.
 
Don’t mention digital disruption to David Whiteing
Buzzwords don’t curry favour with CBA's new CIO - it’s all just innovation to him.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
New features are coming to Outlook.com
May 27, 2015
Outlook.com, thanks to its predecessor Hotmail.com, is one of the world's major webmail services ...
Windows 10 to feature integrated apps for Android and iOS
May 27, 2015
Microsoft reveals multi-platform Cortana connectivity for Windows 10. What the heck is that, and ...
Microsoft launches Office for Android preview
May 22, 2015
Microsoft has launched a preview of Office for Android smartphones. Pre-release versions of ...
Microsoft is working on an iOS email chat feature called Flow
May 22, 2015
Microsoft is working on a new chat app, but at the moment we know more about what we DON'T know, ...
Windows 10 free upgrade: Microsoft details who gets what
May 22, 2015
Microsoft was meant to be streamlining its OS with Windows 10, so why is upgrading so confusing? ...
Latest Comments
Polls
Should Optus make a bid for iiNet?

   |   View results
Yes
  43%
 
No
  57%
TOTAL VOTES: 645

Vote