US Wireless Handset Sales Top $10 Billion in 2002

US Wireless Handset Sales Top $10 Billion in 2002

David Kerr ( inset ), Vice President of the Global Wireless Practice at Strategy Analytics says "Despite the launches of data services from Verizon and Sprint, CDMA sales of US$100 or less will account for 42 percent of US CDMA volume in 2003".

The most recent Strategy Analytics Report, "Handset Strategies Driving $10 Billion Market," indicates that Nokia, Samsung, and Motorola lead all vendors in profitability strategies, targeting sales in profitable mid- and high-tiers.

Published by the Strategy Analytics Wireless Device Strategies Services, the report reviews the winning and losing strategies of the top seven US handset vendors, and the complementary strategies of the top four wireless carriers to drive profitability and replacement sales by upgrading customers from basic entry level to more profitable, feature rich, data enabled handsets.

"The battle for share in mid- and high-tier segments is becoming increasingly competitive," states Chris Ambrosio, Director of the Strategy Analytics Wireless Device Strategies Service. "Vendors who have established brand support have been able to successfully penetrate these profitable market tiers. Brand awareness and quality will be vital to any vendor's efforts to sustain volume sales in these tiers. Vendors without brand power are looking for technical or marketing advantages to sustain volume sales of lower profit units in lower tiers."

David Kerr, Vice President of the Global Wireless Practice at Strategy Analytics adds, "Despite the launches of data services from Verizon and Sprint, CDMA sales of US$100 or less will account for 42 percent of US CDMA volume in 2003. Vendors and carriers will eventually drive higher priced replacement sales, but vendors like Kyocera are currently successful in this entry tier by leveraging design efficiencies and working closely with their carrier partners. In 2003, the most interesting battle will occur in the high end GSM product tiers as Nokia and Samsung attempt to define to form factor and feature sets for emerging GSM/GPRS handsets."

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