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Mobile Handsets Generated $117 Billion in Revenue in 2005, says Telecom Trends International

Top Three Vendors Increased Share to Over 60 percent of Total Revenue, says Report on Future of Mobile Handsets

Sony Ericsson 4^th in revenue, LG 4^th in shipments

Falls Church, Virginia ─ Worldwide, mobile wireless handsets generated $117.2 billion in revenue in 2005, says a report released by Telecom Trends International, Inc. The report, “The Future of Mobile Handsets,” says the 2005 revenue represented an increase of 14.9 percent over the revenue generated in 2004.

Nokia, Motorola, and Samsung were the top three vendors both in terms of revenue and shipments, the report said. These three vendors increased their share of revenue to over 60 percent in 2005. Sony Ericsson was in fourth place in terms of revenue and LG was in fourth place in terms of shipments.

The research report predicted that mobile handset revenue will peak at $129.9 billion in 2008, and will then begin to decline, reaching $125.0 billion in 2012. It said 815.2 million handsets were shipped in 2005, but the shipments will more than double by 2012 to reach 1.7 billion handsets.

According to the report, replacements will constitute 67 percent of handsets shipped by 2012. Due to falling prices of devices, revenue growth will significantly be behind shipments growth during the forecast period, it said.

Mobile handsets are being differentiated both on the basis of their functionality and on the basis of their target user group, said Naqi Jaffery who is the president and chief analyst of Telecom Trends International.

While voice continues to be the common dominator in mobile handsets, buying decisions are increasingly based on features and functions other than voice, Mr. Jaffery said.

Additional information regarding the report may be obtained by calling 703-237-8807, or sending an e-mail to research@telecomtrends.net.

Mobile Handset Vendor Market Share by Revenue – 2005

Source: Telecom Trends International, Inc.

About Telecom Trends International

Telecom Trends International, Inc. conducts leading-edge research on trends and developments in the telecommunications marketplace, and disseminates that research through published reports, custom projects, briefings, and advisory services. The company performs market analysis, technology assessment, and strategic planning.


Mobile Handsets Generated $117 Billion in Revenue in 2005, says Telecom Trends International Top Three Vendors Increased Share to Over 60 percent of Total Revenue, says Report on Future of Mobile Handsets Sony Ericsson 4^th in revenue, LG 4^th in shipments Falls Church, Virginia ─ Worldwide, mobile wireless handsets generated $117.2 billion in revenue in 2005, says a report released by Telecom Trends International, Inc. The report, “The Future of Mobile Handsets,” says the 2005 revenue represented an increase of 14.9 percent over the revenue generated in 2004. Nokia, Motorola, and Samsung were the top three vendors both in terms of revenue and shipments, the report said. These three vendors increased their share of revenue to over 60 percent in 2005. Sony Ericsson was in fourth place in terms of revenue and LG was in fourth place in terms of shipments. The research report predicted that mobile handset revenue will peak at $129.9 billion in 2008, and will then begin to decline, reaching $125.0 billion in 2012. It said 815.2 million handsets were shipped in 2005, but the shipments will more than double by 2012 to reach 1.7 billion handsets. According to the report, replacements will constitute 67 percent of handsets shipped by 2012. Due to falling prices of devices, revenue growth will significantly be behind shipments growth during the forecast period, it said. Mobile handsets are being differentiated both on the basis of their functionality and on the basis of their target user group, said Naqi Jaffery who is the president and chief analyst of Telecom Trends International. While voice continues to be the common dominator in mobile handsets, buying decisions are increasingly based on features and functions other than voice, Mr. Jaffery said. Additional information regarding the report may be obtained by calling 703-237-8807, or sending an e-mail to research@telecomtrends.net. Mobile Handset Vendor Market Share by Revenue – 2005 Source: Telecom Trends International, Inc. About Telecom Trends International Telecom Trends International, Inc. conducts leading-edge research on trends and developments in the telecommunications marketplace, and disseminates that research through published reports, custom projects, briefings, and advisory services. The company performs market analysis, technology assessment, and strategic planning.

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