'Super 3G' handsets to ring the changes

Third of all handset sales by 2012, says Informa

Written by Robert Jaques

'Super 3G' devices will become the largest selling handset type by 2012 as the worldwide mobile market moves towards higher data-rate networks, market watchers predict.

The latest Future Mobile Handsets report from Informa Telecoms & Media forecasts super 3G devices to account for 35.8 per cent of all handset sales in 2012, up from only 1.8 per cent in 2007.

The global handset market will have more than doubled in the past six years, clocking up 974.7 million handset sales in 2006 alone.

This buoyant growth is expected to slow from 2007 onwards, however, with annual growth rates eventually dipping under 10 per cent from 2008.

Total handset sales are forecast to pass the one billion mark for the first time in 2007 to reach an unprecedented 1.105 billion, according to Informa.

The analyst firm predicts that global volume sales are not about to go in decline, but that there will be a degree of levelling out in shipment numbers to reach a still "remarkable" 1.452 billion units by 2012.

According to the study, the market has become polarised. On the one hand, the emerging economies are experiencing large increases in subscriber numbers, driven by healthier economies and the availability of low-cost, entry-level handsets.

But in more developed regions with high penetration rates, growth is largely restricted to a more active replacement of handsets with leading designs and enhanced technical capabilities.

"Handset manufacturers are basing business models on low margins and high-volume supply for basic and low-feature phones," said Dave McQueen, principal analyst at Informa Telecoms & Media.

"But they are currently banking on high margins for feature rich phones, smartphones, value-added service phones and mobile broadband devices supporting super 3G and higher generations.

"Given that the cost of these devices is still relatively high, manufacturers are forced to base their profit on the value of the device rather than on volume."

Tags:

Further reading

Google phone to land second half of 2008

'Android' promises to end fragmentation with open mobile platform   More...

UK texts top a billion a week

SMS technology appeals to all levels of society   More...

AT&T and O2 unveil unlimited iPhone data plans

Providers feed iPhone's data appetite   More...

Motorola begins femtocell testing in Europe

'Major operator' selected for EMEA trial   More...

Related articles

Mobile phone sales post 'healthy' growth

289 million handsets shipped worldwide during the third quarter   More...

Mobile users tune into GPS

Shipments of GPS-enabled handsets to quadruple by 2011   More...

Mobile entertainment market to triple

Revenues of $64bn by 2012, says Juniper Research   More...

Recycled mobile phones to ring up $3.5bn sales in 2007

ABI notes that market for used handsets is booming   More...

Do you agree?

Advertisement

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Watch

24 Jul 2008

3.68 MBSpammer jailed, Esquire e-cover, and network passwords More...

23 Jul 2008

2.99 MBSmall time security, official 'spying' requests and a spammer jail break More...

22 Jul 2008

3.22 MBSat-nav crashes, open source security and female gamers More...

Poll

EUROPEAN E-COMMERCE

EUROPEAN E-COMMERCE

Are you happy making an online purchase from another European country?

Previous poll results

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Spotlight

Credit card transaction

Credit card fraud rampant in the UK

Attempted frauds go unreported and ignored, analysts claim   More...

Intel

Intel rolls out new embedded line-up

System-on-a-chip offerings promise footprint and power saving   More...

Advertisement

Network cables

Tech giants collaborate on wireless HD

Another attempt at cable-free transmission in the home   More...

iPhone fever fills AT&T coffers

US provider cashes in on Apple smartphone   More...

Advertisement