Renewal Cycle: The Hope for Growth in Mobile Phone Market

August 26, 2006 – 3:24 pm

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If you have already read Darren’s entry titled ‘Are global mobile phone sales cooling off, you already know that the mobile phone market is now growing that much in Europe and America. In fact, in Europe and America most people have a cell phone set. So, naturally, the growth is coming from Asia. Well, fortunately, in Europe, there are many people with enough extra cash to spare on a new cell phone set. Mobile companies are introducing new models all the time. So, there is hope for a healthy growth in the mobile phone market in Europe. At least, IDC feels so. I am quoting from a report of IQ Online

The Western European mobile phone market, consisting of traditional mobile phones and converged devices, grew by 7% year on year in the second quarter of 2006 as shipments reached 41.4 million units compared to 38.5 in the corresponding quarter of 2005, according to figures released by market research company IDC.

While market forces continue to suggest that steady growth in the traditional mobile phone market is unsustainable as subscriber saturation in most Western European markets moves beyond 100% and operators continue to scrutinize costs and downsize portfolios, the second quarter of 2006 pitched in a healthy 7% growth.

I feel that there is good potential for growth in converged devices. Many people are not still familiar with converged devices and that is why cell phone companies need not to be too much worried about the market growth in Europe. Just 10-15 years ago, cell phone was considered to be a luxury in many parts of the world. Just think of the year 1990. How many of us owned a mobile phone and what we could do with it? If I am not wrong then that time there was no SMS or even ring tones. Thus, a strong renewal cycle in Europe will keep the mobile phone producers happy.

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