The global recession has impacted the volume of mobile handsets in recent years. This trend has not been seen in equal measure across all segments. While demand on the mid-tier fell away, sales of new smart phones has grown, due largely to consumer demand and mobile operators’ focus on increasing smart phone penetration.
Some of the key questions addressed in this report are:
- Are handset manufacturers making dramatic changes in offerings?
- What changes to the above have on margins?
Vendors are drastically reducing the amount of unique handset models produced, a trend that has been evident since Q2’2011. Compared to 143 handset launches in Q4’2010, Q4’2011 has only witnessed 12 new handset launches. While this figure is likely to increase as the Holiday season approaches, it is not likely to surpass a maximum of 80 total handset models. This shows an increasing consumer trend towards specific types of handset models such as Mid-tier (USD 100 – 200) feature phones, in particular smart phones driven by the worldwide adoption of the Android operating system.
While the number of unique handset models will reduce overtime, revenues and profit margins are unlikely to be affected. In fact revenues will continue to rise globally, with the overall sales increasing from 1.5 Billion USD in 2011 to 1.8 Billion 2015. In particular mid-tier phones will increase their revenue share from 17% in 2011 to 23 % in 2016.
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