Handset Customization the Key to Rising Sales - Report

Over the next 12 months, mobile handset vendors must take advantage of new device features including color screens, polyphonic ringtones, Java, and multimedia messaging services (MMSs) to boost sales of new handsets in Europe, according to a new report from the Yankee Group.

"2001 was unquestionably a disappointing year for the European mobile handset industry. Saturated markets, infrastructure delays, and other external events conspired to abruptly turn booming sales into the first ever year of market contraction," according to Declan Lonergan, Director of Wireless/Mobile Europe. "Although delayed availability of bearer technologies and protocols like GPRS, W-CDMA, and WAP have often been cited as the key obstacle to the launch of advanced mobile data services, the importance of new phone technologies has been largely overlooked."

Lonergan added, "In the second half of 2002 and 2003, the wireless industry's preoccupation with transport technologies must give way to greater emphasis on device features that will act as a catalyst for new services. The introduction of mid-range camera phones in conjunction with attractively priced MMS handsets will be particularly important. Although the leading vendors' device ranges currently reflect a heavy bias toward voice and basic feature sets, we will see three major upgrade cycles occur over the next two years: the first driven by color screens and MMS, the second by the introduction of cameras into mainstream phones, and the third by moving image capabilities. In the study, we project the deployment and adoption of key new feature sets, and provide a thorough assessment of the impact each will have on this intensely competitive handset marketplace."'"

Posted to the site on 28th August 2002

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