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To: Eric L who wrote (2268)	5/30/2002 11:59:59 AM
From: Eric L	Read Replies (1) \| Respond to of 9255

re: In-Stat on Activated Handset Growth * Global revenues for handsets are expected to grow to more than $100 billion in 2006 from an expected $60.9 billion this year and $57.6 billion last year. * Cell phone sales were plagued last year by: - overproduction - delays in the arrival of products with the desired features - faltering worldwide economy * Rebound, necessitates: - reasonably priced and desirable content - decent-sized color displays - intuitive operation - multifunctional global positioning system - multibrand roaming capability. * The Americas will account for the activation of slightly more than one quarter of the worldwide handset uptake this year. * Latin America will take an increasingly larger role in handset activations, as it climbs to 10.2 percent in 2006 from an expected 6 percent this year. >> Active Handset Market To Grow 2/3 Through '06 -Study Reuters May 29, 2002 The global market for new wireless telephones put into use will grow by two-thirds through 2006, according to a study released on Wednesday. Consumers outside the United States can buy cell phones over the counter, so high tech research firm In-Stat/MDR prefers to track when a customer actually activates service with a phone as a more accurate gauge of demand. While cell phone sales were plagued last year by overproduction, delays in the arrival of products with the desired features and a faltering worldwide economy, global revenues for handsets are expected to grow to more than $100 billion in 2006 from an expected $60.9 billion this year and $57.6 billion last year, according In-Stat. "We can still look forward with a moderate amount of enthusiasm. Now that prepaid subscribers are being de-emphasized in many regions, the percentage of low-featured, low-margin, handsets are on the decline and prices are expected to remain reasonably stable over the next five years," In-Stat analyst Ray Jodoin said in a statement. For handset sales to rebound, however, a number of conditions are necessary, including reasonably priced and desirable content, decent-sized color displays, intuitive operation on the phones, a multifunctional global positioning system and multibrand roaming capability. While voice calls will continue to drive the worldwide market for the foreseeable future, data can help boost handset sales, not to mention profit margins and carriers' average revenue per users, Jodoin said. The key is whether content and price are right, which they currently are not. In the study, which explores the worldwide market for first generation, or 1G, 2G, 2.5G and 3G handsets, In-Stat also said the Americas will account for the activation of slightly more than one quarter of the worldwide handset uptake this year. Latin America will take an increasingly larger role in handset activations, as that region's share of the worldwide activation market climbs to 10.2 percent in 2006 from an expected 6 percent this year, In-Stat said. In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier, a publisher and information provider. << - Eric -