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Future Success
in Global Handset Market Dependent on Survival of the Fittest
SCOTTSDALE, Ariz., May 16, 2001
- Corporate-level stability, effective management, and the ability
to quickly adapt to changing market conditions are the key factors
that determine survival vs. failure for manufacturers in the competitive
global wireless handset business, according to Cahners In-Stat Group
(http://www.instat.com). The
high-tech market research firm has determined that in this competitive
market only two strategies have proven to work: a marketing focus
and development of unique business models that drive effective content-provider
partnerships.
"Market leader Nokia illustrates effective
implementation of a market-focus, mass production approach. The
company heavily markets modestly priced handset units that suit
existing consumer needs. Their handset business unit is accountable
for 72% of the company's net sales and is growing faster than their
other primary business unit, Networks," says Brenda
Sky, Industry Analyst with In-Stat's Wireless
Handsets Group. However,
In-Stat finds that number two and three players, Motorola and Ericsson,
have short-run profitability issues in the divisions that produce
handsets. Despite having grabbed significant shares of the growing
U.S. market, both companies are losing ground to market leader Nokia.
Sky continues, "Not only does a company need to prove financial
stability and be effectively managed to survive as a manufacturer
in this industry; the business unit or segment responsible for wireless
handsets needs to deploy a powerful and effective strategy to establish
profitability. With lean and mean organizations positioned for attack
on new and existing wireless handset markets, the fight for market
share in 2001 will truly be survival of the fittest."
In-Stat has also found that:
- Philips unsuccessfully deployed
a similar strategy to Nokia. The company aspired to rise to a
top three position from their existing 4% of market share. However,
they failed to build brand recognition and quit the handset business
last month.
- Motorola, most visible for harsh
lay-offs in recent months, still spends nearly 12% on R&D and
plans to capitalize on the mobile-Internet in the U.S.
- Matsushita has blended innovation
and a unique business model to bring well-received new concepts
and products to domestic Japanese consumers.
The report, "Survival
of the Fittest in Global Wireless Handset Manufacturing",
(#WH0101MS) provides a detailed analysis and comparison of the global
top ten wireless handset manufacturers. It outlines each company's
strengths and weaknesses and gives market share statistics. The
report also describes and evaluates the size and significance of
each manufacturer's wireless handset business relative to their
other business units. Finally, it offers measurement criteria for
determining which of these companies will continue to be market
leaders as the new economy unfolds. To order this report or for
more information, please contact Matthew
Woods at 617.630.2139; mwoods@instat.com.
The report price is $2,995.
Cahners In-Stat Group (http://www.instat.com)
covers the full spectrum of digital communications research from
vendor to end-user, providing the analysis and perspective that
allows technology vendors and service providers worldwide to make
more informed business decisions.
For more information,
contact:
Brenda
Sky, Industry Analyst - Wireless
Handsets
Phone: 480.609.4559
Email: bsky@instat.com
Kirsten Skedd,
Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com
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