Ultra Low Cost Handsets 2007-2012: Market Analysis and Forecasts of 2G & 3G Communications in Developing Markets

Published Date: August 2007 Published By: Visiongain Order Code: R155-245 $3,100.00   Electronic Access - Single User $10,200.00   Electronic Access - Global Site License   Questions About This Report E-mail a Colleague Printable Page Fax Your Order Description Table of Contents Similar Products Table Of Contents E. Executive Summary E1. ULCHs will Significantly Boost Mobile Handset Industry's Growth E2. ULCH Strategy: A Key Requirement for the Emerging Market's Subscriber Growth E3. ULCH Strategy will Increase Diffusion of Data Services in Saturated Markets E4. Factors Influencing the Success of the ULCH Strategy E5. ULCHs can Bring Benefits to all Players in the Wireless Value Chain E6. Key Findings 1. Introduction 1.1 Defining "Ultra Low-cost Handsets" (ULCH) 1.2 Business Case for ULCHs 1.2.1 GSMA's ULCH Initiative Table 1: List of Member Operators in EMH Programme (2005) Table 2: List of countries with below average World Bank's GNI and less than 50% mobile service penetration Table 3: Handset Specifications for EMH Programme 1.2.2 ULCH Strategy is Critical for Vendors' and Operators' Growth Strategy 1.2.2.1 Sustaining the Growth in Emerging Markets 1.2.3 Current Market Statistics on ULCHs 1.3 Aim of the Report 1.4 Report Structure 1.5 Report Scope 1.6 Methodology 2. Emerging Markets 2.1 Emerging Markets: Key Statistics Chart 1: Population in Emerging Markets in Millions (March 2007) Table 4: Population and Mobile Penetration Figures: for the Most Populated Countries in Emerging Markets (2006) Chart 2: Mobile Penetration in Emerging Markets (March 2007) 2.1.1 Wireline Connectivity 2.1.2 Mobile Penetration in Rural Areas 2.1.2.1 Initiatives to Offer Connectivity in Rural Areas 2.1.2.1.1 Vendors 2.1.2.1.2 Operators 2.1.3 Subscriber Behaviour in Emerging Markets 2.1.4 Subscriber Growth in Emerging Markets Chart 3: Subscriber Growth in Emerging and Mature Markets (2007-2012) Chart 4: Subscriber Growth in Key Markets (2006) 2.1.5 Pricing plans pursued by Operators 2.1.6 Current Handset Availability Chart 5: Motorola's Market Share in ULCH Segment in 2006 2.1.6.1 Handset Subsidies in Emerging Markets 2.1.7 Handset Distribution 2.1.8 ULCHs vs Low-cost Handsets 2.2 Description of the Major Markets for ULCHs 2.2.1 India Chart 6: Subscriber Growth in India (2006) Chart 7: Increasing Mobile Penetration in India (2001-2006) Table 5: Key Indian Operators and Services Offered by them 2.2.1.1 Handset Availability Chart 8: Increasing handsets Sales in India (2005-2012) 2.2.1.1.1 CDMA Vs GSM ULCHs 2.2.1.1.2 CDMA ULCH Market in India 2.2.1.2 Tariffs 2.2.1.3 Government Initiatives 2.2.1.4 Further Potentials in Indian Market Chart 9: India's Subscriber Growth Forecast (2006-2012) 2.2.2 China Chart 10: China's Mobile Subscriber Base (2006)) 2.2.2.1 Handset Availability 2.2.2.1.1 Ultra Low Cost Handsets in China Chart 11: China's Subscriber Growth (2007-2012) 2.2.2.1.2 TD-SCDMA Handsets 2.2.2.1.3 Chinese Government's Initiative 2.2.3 Africa 2.2.3.1 Key Statistics of African Market 2.2.3.2 Region Specific Factors 2.2.3.3 Government Policies 2.2.3.4 Mobile Banking Driving ULCH Demand in Africa 2.2.3.5 Handset Availability Chart 12: Africa's Subscriber Distribution (2006) Chart 13: Africa's Mobile Penetration (2006-2012) Chart 14: Mobile Subscribers in African Subcontinent (2006-2012) 3. Key Players in the ULCH Value Chain 3.1 Handset Vendors 3.1.1 Nokia Chart 15: Nokia Handsets Average Selling Prices (UDS) (Q1 2005-Q1 2007) 3.1.1.1 Nokia's ULCH Strategy 3.1.1.2 Nokia's ULCH Portfolio Table 6: Nokia's ULCH Portfolio 3.1.2 Motorola Table 7: Motorola's ULCH Portfolio 3.1.2.1 Motorola's Motofone wins the GSMA Award 3.1.2.2 Motorola's Strategy in ULCH Market 3.1.2.3 Motorola's Success or Failure in ULCH Market? 3.1.2.4 Motorola's CDMA ULCHs 3.1.3 LG Table 8: Operators involved in W-CDMA ULCH Initiative 3.1.4 ZTE 3.1.5 Sony Ericsson 3.1.6 Samsung 3.1.7 Ningbo Bird Table 9: S198 Technical Specifications 3.1.8 Other ODM's Table 10: Handset Manufacturers and their Strategies in ULCH Market 3.2 Chip Manufacturers Table 11: Chip Manufacturers and their Strategies in ULCH Market 3.2.1 Texas Instrument 3.2.1.1 TI's 2.5G Wireless Platform 3.2.1.2 TI's 3G Wireless Platform 3.2.2 NXP 3.2.3 Infineon 3.2.4 Philips 3.2.5 Silicon Laboratories 3.2.6 Qualcomm 3.2.6.1 Qualcomm explores Revenue Growth through Low Cost Handset 3.2.6.2 Qualcomm's Success 3.3 Operators 3.3.1 Vodafone 3.3.1.1 Vodafone's Strategy 3.3.1.2 Operator Branded Handset Strategy 3.3.2 China Unicom 3.4 Infrastructure Providers 3.4.1 Ericsson 3.4.2 Siemens Solution 3.4.3 Motorola's Solution 3.4.4 Other New Infrastructure Entrants 3.5 Other Players in the Value Chain 3.5.1 Spansion 3.5.2 LSI Logic 4. Vendor and Operator Issues and Strategies in ULCH Market 4.1 Issues and Strategies for Vendors 4.1.1 Is the Growth Sustainable in ULCH Segment? 4.1.2 How to Realise Economies of Scales? 4.1.2.1 Cost Leadership 4.1.2.2 Operational Excellence 4.1.3 Portfolio Strategies 4.1.3.1 Segmentation in emerging markets demands a cohesive ULCH/high-end handset approach 4.1.4 Brand Management 4.1.5 Dealing with Competition 4.1.6 Promotion 4.1.7 Partnerships and Alliances 4.1.8 Robust Product 4.1.9 Lower the BOM 4.1.10 Distribution 4.1.11 Coherent Marketing Strategy 4.2 Operator Strategies 4.2.1 Operator-Branded Handsets 4.2.2 Promote Service Uptake 4.2.3 Improving Coverage and Capacity of Networks 4.2.4 Segmenting and Targeting the Profitable Customer Segments 4.2.5 Flexibility and Adaptability 4.2.6 Choosing services that will benefit the low ARPU customers 4.2.7 Promotion 4.2.8 Pricing Strategies 4.2.9 Market Focus 4.2.10 Gaining Competitive Advantage through Effective and Efficient Operations 4.2.11 Other Essential Tactics 4.3 ULCH Market Dynamics 4.3.1 Threat from Substitutes 4.3.1.1 Second Hand/Refurbished Handsets 4.3.1.1.1 Re-Cellular 4.3.1.1.2 FoneAid 4.3.1.2 Reducing the Threat from Substitutes 4.3.1.3 The threat of low-cost Handsets 4.3.2 Threat from New Entrants Table 12: New Entrants planning to enter ULCH Market 4.3.3 Threat from Competition Chart 16: Falling Profit Margins in Handset Market (2007-2012) 4.3.4 Threat from Buyers (Network Operators) 4.3.5 Threat from Suppliers 4.4 Analysing the Ultra Low-cost Macro Environment 4.4.1 Political Factors 4.4.2 Economic Factors 4.4.3 Social Factors 4.4.4 Technological Factors 4.4.5 Environmental Factors 5. Major Developments in the ULCH Market 5.1 Success of the EMH programme 5.1.1 GSMA's W-CDMA Initiative 5.2 W-CDMA ULCH Market Chart 17: W-CDMA ULCH Average Selling Prices 5.2.1 Will LG succeed in its W-CDMA ULCH Initiative? 5.2.2 Will Other Vendors target for W-CDMA ULCH Segment? 5.2.2.1 TechFaith 5.2.3 In which Markets will W-CDMA ULCHs be Most Successful? 5.2.4 Feasibility of Ultra Low cost W-CDMA Handsets Chart 18: Global 3G Handset Shipments all Handset types (2006-2012) Chart 19: W-CDMA ULCH Shipments (2007-2012) 5.2.5 W-CDMA Market Chart 20: Global W-CDMA Subscribers (2006-2012) Chart 21: Global 3G Revenues (2006-2012) 5.3 CDMA ULCH Initiative Chart 22: 3G CDMA ULCH Average Selling Price (2007-2012) 5.3.1 Cal-Comp 5.4 Indian Government's Initiative 6. Statistics and Forecasts 6.1 Mobile Coverage Statistics Chart 23: Wireless Network Availability Worldwide Chart 24: Wireless Network Users Worldwide Chart 25: Wireless Users Worldwide (2006-2012) 6.2 Vendor Market Share Chart 26: Handset Vendor Market Shares in (Q1 2007) Chart 27: Ultra Low-Cost Handset Vendor Market Share (2008) Chart 28: Ultra Low-Cost Handset Vendor Market Share (2012) 6.3 Mobile Device Type Market Share Chart 29: Mobile Device Type Shipment (2007-2012) 6.4 ULCH Market Chart 30: Global ULCHs Shipments in Millions (2007-2012) Chart 31: ULCH Shipment by Region (2012) Chart 32: ULCH Shipments in India and China (2012) 6.5 Operator Revenues Chart 33: Service Revenues from Selected Markets (2008) Chart 34: Cellular Revenues CARG (2007-2012) 6.6 Handset Cost, Availability and Features Chart 35: Falling ULCHs Costs (2005-2012) 6.6.1 Cost Analysis 6.7 Chip Manufacturers Market Share Chart 36: Chip Manufacturers Market Share in ULCH (2012) 6.8 Bill of Materials Table 13: Bill of Materials (BOM) for an Ultra Low-cost Handset Chart 37: Bill of Materials for ULCH (2005- 2012) 6.9 Profit to Handset Vendors Chart 38: Profit Margins in ULCH (2005-2012) 7. Conclusion 7.1 SWOT Analysis Table 14: ULCH SWOT Analysis 7.2 Conditions for Success Figure 1: Conditions for Success for ULCH Strategy 7.2.1 Barriers of Growth in Emerging Markets 7.2.2 Challenges in ULCH Market 7.2.3 Challenges for Handset Vendors 7.2.4 Challenges for Network Operators Table 15: Criterion for Success in Emerging Markets 7.3 Conclusions Similar Products • The Taiwanese Smart Cellular Device Application IC Market, 3Q 2008 Published Oct 2008 by Market Intelligence Center • Non-AFIS Fingerprint in Notebook PCs and Wireless Devices Markets Published Sep 2008 by Frost & Sullivan • SMobile Systems Private Vendor Watchlist Profile Published Sep 2008 by IDC • Wireless Monitoring In Home Healthcare Published Sep 2008 by Berg Insight • Mobile Data Modules: Powering the Market for Mobile Internet Peripherals and Devices Published Sep 2008 by ARCchart • UK Telecommunications Market Development Published Sep 2008 by Market and Business Development • Telecom Equipment Industry Published Sep 2008 by Global Industry Analysts • Red Bend: Mobile Software Management for Mobile Operators and Device Manufacturers Published Aug 2008 by IDC • Extending PBX Functionalities to Mobile Devices Published Aug 2008 by Frost & Sullivan • Wireless Communications Technologies And Solutions Published Aug 2008 by Mind Commerce Publishing