Strategic challenges in the future market for mobile devices

– a report on the interplay between WAP-phones, Smart-phones and PDA’s.

The market for mobile phones is characterised by strong competition, falling prices and mobile operators with a short-term and quantitative view on their customer base. Market penetration has, in many countries reached a level, which makes it difficult to identify new and attractive segments. The acquisition cost is often too high compared with the ARPU generated by these segments.

The selling process has shifted its focus from new to replacement sales. At the same time, mobile services based on SMS and WAP/GPRS represent an increasing part of operators’ revenue. On top of this, the majority of customers will require new terminals in order to be able to make full use of these revenue-generating services of the future. In short, the business is moving from sale of talk-based services to the sale of content-based services.

Strategic challenges in the future market for mobile devices, is comprehensive report mapping the challenges to terminal producers, operators, content providers and distributors in the future market for handheld devices. The report considers what influence different players will have on each other’s business and how they can work to create a healthy business under those conditions. We favour none of the different players, and take a critical look at the market as a whole and the cost of subsidising terminals in the future.

There is no doubt that retailers play an important role in shaping this market. But also, subsidising, the technological development and future mobile services will play a significant role in how the market for handheld devices will develop and on who will make money.

This report is a strategic perspective on our reports evaluating different distribution channels. It provides both background and advice on how to meet these strategic challenges.

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