Mobile-Phone Market to Remain Stable in 2004, with 3G Services Expected to Grow

Strategic Insights -

The mobile-phone market in the Asia-Pacific region is expected to remain stable in 2004, with around 3.6 million handsets sold each month. The growth is largely due to the increasing demand for mobile phones from mainland tourists and the economic recovery in the region. However, the market growth is expected to slow down in the second half of the year due to a reduction in mainland tourist arrivals.

Key Takeaways:

  • The mobile-phone market in the Asia-Pacific region is expected to sell around 3.6 million handsets each month in 2004.
  • 3G services are expected to contribute around 15% of the total handsets sold, with around 45,000 handsets sold each month.
  • Motorola is strengthening its partnerships with 3G operators to provide tailor-made handsets and encourage customers to switch to video-based mobile-phone services.
  • The supply of 3G handsets is tight, and operators are providing steep handset subsidies to attract users.
  • There is a difference between the sales of 3G phones and service penetration, with many price-sensitive customers opting for 2G services.
  • Motorola's latest 3G handset, the V3x, is sold as a 2G/3G compatible handset to attract users and encourage them to upgrade to 3G services later.
  • The handset market recorded a 10% growth last month, thanks to the contribution of mainland travellers and the economic recovery.
  • However, the growth is expected to slow down in the second half of the year due to a reduction in mainland tourist arrivals and the market size.

Statistics:

  • 3.6 million handsets sold each month in 2004 (Source: Motorola Asia-Pacific)
  • 15% of total handsets sold contributed by 3G services (Source: Motorola Asia-Pacific)
  • 45,000 handsets sold each month for 3G services (Source: Motorola Asia-Pacific)
  • 10% growth in handset market last month (Source: Motorola Asia-Pacific)
  • 300,000 handsets sold each month, 15% of which are for 3G services (Source: Motorola Asia-Pacific vice-president Cedric So)

Sources:

  • "Motorola Asia-Pacific vice-president Cedric So"
  • Motorola Asia-Pacific
  • Motorola