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21 April 2008


Rich-media specialists increase share of handset profits

Led by Nokia, the top five original equipment manufacturers (OEMs) took 84% of the $19bn global handset industry profits in 2007, according to a report by market research firm Strategy Analytics. However, their profit share is actually declining as a new breed of suppliers led by Research in Motion, HTC, and Apple begin to carve out media-centric strategies that enhance their ability to drive both revenue and profit share through 2010.

Largely cut out of the mix, Japanese suppliers are exiting the market as their share of industry profits and revenues continue to decline, the firm adds.

In contrast, Chinese manufacturers have yet to prove that offering carrier-branded, low-cost entry can be a viable first step in a long-term handset strategy, the report concludes.

See related items:

Mitsubishi Electric terminating mobile handset business

Handset shipments up in ‘07, but ‘08 forecast cut

Search: Handset market Nokia