New Datacomm Research Report: Feature Phones to Dominate Mobile Handset Sales by 2005

Vendors Must Match Features to Market Segments With Pinpoint Accuracy and


Apr 06, 2004, 01:00 ET from Datacomm Research Company

    CHESTERFIELD, Mo., April 6 /PRNewswire/ -- As the mobile phone industry
 pursues its second billion subscribers, a new generation of handsets with
 integrated cameras, push-to-talk, locating, and other features is taking over
 the market, forcing operators to pay much closer attention to their device
 portfolios. That is one of the conclusions of the new 112-page report, Mobile
 Feature Phones: Consumer & Business Market Segments, released today by
 Datacomm Research Company.
     "Handsets play the lead role attracting subscribers by meeting the needs
 and wants of specific market segments," said Ira Brodsky, President of
 Datacomm Research and the report's author. "Given the intense competition,
 operators need to work closely with handset makers and software developers to
 match their handset portfolios to teens, families, business travelers, field
 workers, and other key market segments," he added.
     Mobile Feature Phones: Consumer & Business Market Segments is the result
 of more than 25 in-depth interviews with leading manufacturers, operators,
 software developers, enterprise customers, and technology experts. The report
 contains sections identifying and characterizing major market segments for
 Camera Phones, Push-to-Talk, Location-based Services, Multimedia Messaging
 Service (MMS), Wireless Instant Messaging, Video Streaming, Audio Streaming,
 Gaming, and Mobile Commerce. More than 70 select vendors are profiled.
     Additional conclusions found in Mobile Feature Phones: Consumer & Business
 Market Segments:
      1. The Number One issue confronting feature phones is ease-of-use. New
         devices won't sell and new services won't be used unless the average
         subscriber can perform desired functions without consulting a manual
         and with the minimum number of key clicks. Handset manufacturers,
         operators, and software developers must collaborate to ensure
      2. Operators understand the critical role devices play in attracting
         subscribers. However, testing and supporting diverse user devices is a
         major expense and headache for operators. Thus, operators appreciate
         devices that can be repackaged for different market segments and tools
         that help them better manage their device portfolios (e.g., service
         activation and device configuration tools).
      3. Camera phones are outselling pure digital cameras because camera
         phones are subsidized by mobile phone operators. However, camera phone
         improvements -- such as higher resolution cameras, general purpose
         flash, and optical zoom -- are needed to maintain momentum.
      4. Push-to-talk (P2T) could quickly become standard on feature phones.
         Voice is still mobile phone's "killer application" and P2T takes voice
         service to the next level. There is strong evidence of a four-pillar
         P2T market: friends and family, mobile professionals, white collar
         vertical segment, and blue collar vertical segment.
      5. Feature phones are addressing markets once assumed the exclusive
         domain of smart phones. The market for smart phones is considerably
         narrowed -- as demonstrated by the fact feature phones are already
         outselling smart phones by a wide margin.
     Mobile Feature Phones: Consumer & Business Market Segments is the latest
 in Datacomm Research's CompetitiveEdge(TM) family of reports and sells for
 $1,495.00 (single-user PDF version).  The price includes one hour of analyst
 consultation. The report will begin shipping April 9, 2004. The report may be
 ordered online at the firm's secure website . Visa,
 MasterCard, and American Express accepted. Orders may also be faxed to (314)
 514-9793, phoned to (314) 514-9750, or mailed to Datacomm Research Company,
 14318 Millbriar Circle, Chesterfield, Missouri 63017.
     About Datacomm Research Company
     Datacomm Research is a leader in researching, analyzing and forecasting
 emerging computing and communications markets. Entering its fifteenth year,
 the company helps clients around the world identify and exploit major growth
 opportunities. Other Datacomm Research reports include Mobile Movies: the
 Market for Short Videos on Small Screens and Wireless Metropolitan Area
 Networks: Opportunities & Illusions.

SOURCE Datacomm Research Company