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Nokia sees mobile market shrink







Nokia sees mobile market shrink

Nokia sees mobile market shrink 07/15/2004 06:34 AM

The Finnish mobile phone giant records a rise in quarterly profits, but warns of pressures ahead as its market share contracts.




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Nokia on Monday announced the plans of making three new phones for the U.S. Market in hope of increasing its share of the US market. They also said that they hope to sell the phones in Mexico, Argentina, and Brazil.

The phones will be based on a wireless technology used by Verizon Wireless and Sprint Mobile, CDMA. Nokia says that they plan to sell one of the phones through Virgin Mobile, but have not given details about their plans with Verizon and Sprint. Cingular Wireless and T-Mobile don't look like they will be in on the plans because of their GSM Technology. Nokia has had less success in the US due to the standard US wireless technology, GSM.

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View: Original article @ Reuters.com


Read full story...

BBC NEWS | Entertainment | US sees
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Study sees decline in global handset
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The global handset market will slow down, so companies must target new demographics and create innovative marketing strategies for existing users, according to a new study by consultancy Frost & Sullivan.

Although the total number of mobile handsets sold is expected to rise, the average price of each unit is expected to fall as vendors aim at emerging markets. Overall, worldwide revenues are projected to fall by nearly 16 percent by the end of the decade -- from $126.28 billion in 2004 to $106.59 billion in 2010.

The study, which described the current era in the handheld industry as one of "transition," offered suggestions to help handset companies attempt to turn the trend around. One way for the industry to gain revenue is to market newer and more expensive technology to existing handheld users, Frost & Sullivan said. For instance, the "smart phone," which includes a mobile phone, a PDA (personal digital assistant), and a notebook computer all in one, could appeal to current and former users because such a device is easier to carry than several different devices.

Another important move for mobile handheld device companies is to market toward the technology friendly youth market. Young people between the ages of 13 and 25 offer a lucrative revenue stream and the youth market represents demand for a variety of applications such as downloading ringtones, text messaging and interactive gaming. In fact, youths' downloading of ringtones accounts for the majority of the industry's current revenue.

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The study suggested that though revenues are expected to decline, consumer electronics is still shifting more and more toward mobile devices. It hinted that the handheld industry will have a chance to capitalize as long as companies aggressively explore markets and demographics and respond quickly to the customers' need for personalized and integrated wireless equipment.

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