Global Handset Sales

WSJ writes about the continued astonishing sales growth in mobile phones:

Momentum in the global handset market is expected to continue into 2005 after growth last year exceeded even the most optimistic forecasts, technology research company Gartner Inc. said.

Handset sales are expected to exceed 730 million units in 2005, after rising 30% to 674 million in 2004.

“In mature markets, it remains to be seen whether the record-breaking levels of replacement sales can be sustained” in 2005, said Hugues De La Vergne, an analyst at Gartner, based in Stamford, Conn. “In emerging markets the major battleground in 2005 will be the sub-$50 handset arena.”

CNN adds: “Growth in emerging markets would continue as the mobile phone market is expected to hit 2 billion subscribers some time this year, up from 1.7 billion by late 2004. The challenge is to sell to people who cannot yet afford mobile telephony…Motorola has announced it will produce a handset for less than $40 later this year to address that market.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.