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Technical Insight

Slower growth for handsets predicted in 2001 (Market News)

Gartner Dataquest (San Jose, CA) is projecting worldwide mobile phone sales in excess of 506.5 million units in 2001, a 23% increase on last year. However, the growth rate is slower than in 2000, said the company, when sales of mobile phones were up 38% over 1999. "The rapid annual growth rates of the past several years concealed numerous operational and strategic weaknesses among handset manufacturers," said Bryan Prohm of Dataquest s Worldwide Telecommunications Group. "However, these deficiencies are now being fully exposed thanks to a more challenging business environment. Supply has finally surpassed demand, and although sales growth will continue, only those manufacturers with a strongly differentiated product offering will continue to thrive." The market will continue to grow steadily through to 2005, when 740 million units will be sold worldwide more than a third (280 million units) to the Asia-Pacific and Japan region. Western Europe will retain its number two position with 207 million units. "The market is in a curious position," said Dataquest s senior telecom analyst Peter Richardson. "High levels of stock carried over from last year are depressing new sales from manufacturers in the first quarter, but sales in Europe and Asia-Pacific remain strong, underlining our belief that annual sales of more than 500 million units are still possible." For more information contact Tom McCall at Gartner Dataquest (San Jose, CA). Tel. +1 408 468 8312; e-mail "tom.mccall@gartner.com".
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