Mobile Phone Manufacturers Expect Slowdown
Despite strong results in 2005, Brazil's mobile phone manufacturers are seeing signs of a slow down in 2006, reported local news service AE-Setorial.
Manaus' technology center, which produces the largest number of cell phones in Brazil, recorded a 32% growth in sales in 2005, said the president of Amazonas state's industry center (CIEAM) Maurício Loureiro.
However, despite the good results, he admits that there will be a change in the market, with the arrival of new products with lower prices.
"The market for mobile phones for lower social groups is saturated, but despite this people with stronger purchasing power will use third generation products and are not worried about the cost of the product," said Loureiro.
Since September, the growth of handset sales has been below projections and can be explained by the fact that operators are relinquishing their aim to gain market share.
This view is supported by analyst Carlos Constantini at Deutsche Ixe Equity Research. "The subsidies are smaller as operators look for more creative promotions to retain customers and recover margins," Constantini told BNamericas.
A further indication of the slowdown is that Christmas sales are for the first time likely to be below Mother's Day sales, when 2.9 million phones were sold, according to local consultancy Teleco.
The cell phone market should stabilize at 30 million handsets a year, said Loureiro.
BNamericas.com"
Posted to the site on 14th January 2006