Mobile industry at the threshold of saturation in Western markets |
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Mon, 18 Jul 2005 05:05
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There is a distinct possibility that the booming mobile market is at the point of saturation, according to a market survey conducted by In-Stat. The survey also said that the mobile market would continue to grow, but the growth would plane out in the near future.
The survey has also found that almost 80 percent of the worldwide mobile phone market is dominated by just five giants. Nokia, Samsung, Motorola, LG and Sony Ericsson would be these giants. The $112 billion mobile market is now set to boom in India, China and Eastern European countries, so manufacturers could be expected to shift their attentions to these markets. In fact all the five companies mentioned before have already unleashed an aggressive campaign in India. They have tied up with major service providers and are providing their handsets as a part of the service.
Commenting on these findings, Allyn Hall, Director of Wireless Research, said, "The slowing pace is a result of some mature markets at, or near, full penetration, and weaker-than-expected growth in some emerging ones. It’s a sign of a maturing industry." She was referring to markets in the US and mainland Europe including the United Kingdom.
In-Stat also found that the mobile market grew at a record pace in the last year, but that growth was less than the double digit one posted in the previous year. But in terms of sheer volume, it was the fourth consecutive record year for the industry, In-Stat revealed.
Meanwhile, another research conducted by iSuppli found that the mobile market would shift to replacement handset purchases in the coming years. The firm said that the number of purchases by new subscribers would come down since almost everyone owns a handset these days.
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