According to a report released today by ARC Group, the wireless industry analysts, by the end of 2003 more than 55 million consumers worldwide will own camera-phone handsets, more than doubling from the 25 million mobile units sold in 2002.
For the UK and many other mature markets worldwide, the growth will come from existing mobile phone users as they are encouraged by handset manufacturers and network operators to replace their handsets with more feature-rich models, a turnaround from a few years ago when the emphasis was on the first-time buyer.
"This year we have seen a massive growth in camera-enabled phones, with 15 per cent of handsets worldwide featuring built-in cameras or designated camera accessories," commented David McQueen, ARC Group's Senior Consultant and author of the Future Mobile Handsets 2003-2008 report. "Tempted by innovative design features such as rotational cameras and swivel screens, along with the advent of multimedia messaging, colour displays and polyphonic ring tones, we'll see many consumers upgrading their mobile phones this Christmas."
The ARC Group study into the future of mobile handsets predicts that by 2005, 130 million handsets with camera capability will be shipped globally, and with the additional boost of 3G roll out, this figure is expected to increase to 210 million by 2008. "Globally, the Asia Pacific region will continue to lead the way, but Europe is expected to improve its market share through the continued take-up of mobile messaging services and with operators promoting attractive services such as Vodafone's Live! service," McQueen explained.
ARC Group predicts the entire mobile handset market to grow by 10.3 per cent with consumers buying 444 million mobiles by the end of 2003, up from 402 million in 2002. This trend is set to continue for the next five years, with handset sales forecast to reach 689 million by 2008, in line with subscriber growth.
"Despite continued delays to 2.5G and 3G network roll out in the early part of 2002, there was distinct expansion by the end of the year, and the market in 2003 has since staged a comeback," commented McQueen. While this is encouraging news for the mobile industry, the Future Mobile Handsets report advises that as the market evolves, major challenges will still continue for handset manufacturers. "The challenge for the mobile handset market is to find the right balance between device costs, performance and style. Handset manufacturers must be able to differentiate themselves from the competition by carefully understanding the consumer groups they are targeting and identifying key markets for future growth. Consequently branding and a heightened end user focus will become crucial for new entrants and the major players," McQueen concludes."
Posted to the site on 19th August 2003
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