First Quarter 2001 Wireless Handset Sales and Profits Slow to a Crawl; The Strategis Group Cites Economic Slowdown, Slower Net Additional And Replacement Sales as Key Reasons

Apr 30, 2001, 01:00 ET from The Strategis Group, Inc.

    WASHINGTON, April 30 /PRNewswire/ -- The current telecommunications
 marketplace climate dramatically influenced handset sales growth during the
 first quarter of 2001, according to new findings from The Strategis Group. The
 handset vendor community saw sales growth slow down to just 12%, compared to a
 booming growth rate of 59% just a year ago. The Strategis Group, based on the
 findings from Strategis dataBank(TM): World Cellular/PCS Handset Sales,
 attributes the low growth numbers to the general economic slow down, along
 with slower growth in net additional sales, market saturation and lower than
 expected replacement sales.
 
     World Handset Unit Sales and Growth, 1Q1999-1Q2001
 
                Sales (millions)     Growth
     1Q1999           57               62%
     1Q2000           90               59%
     1Q2001           101              12%
 
     Source: The Strategis Group, Inc.
 
     "Vendors are experiencing high production costs and are unable to reap
 economies of scale necessary to make their handset business profitable," said
 Sylvia Panayi, Senior Analyst at The Strategis Group. "Net additional
 subscribers that represented 55% of the total sales in the first quarter of
 2000 are at about 38% in the first quarter of 2001.  The reduction in net
 additional subscribers is indicative of market saturation in Western Europe
 and certain Asian markets, which have reached penetration levels of 80%."
     The telecom industry has taking a financial beating with depressed stock
 prices and a cold shoulder from lenders.  Unfortunately, the handset market is
 being drawn into the downturn, which is affecting consumer sales.  The
 Strategis Group has been tracking the handset slowdown with the Strategis
 dataBank(TM): World Cellular/PCS Handset Sales, a unique database product that
 gives quarterly updated handset statistics.  The product provides current data
 on sales, manufacturer market share and forecasts for cellular/PCS handsets,
 tracking sales at the following levels: world, region, country and technology.
 Technologies tracked include Analog, TDMA, CDMA, GSM, PDC, PHS,GPRS, EDGE, 1X,
 1X/3X-EV, W-CDMA.
 
     The Strategis Group, a C7 company -- with offices in Washington, DC,
 London, Singapore, and Sao Paulo -- publishes in-depth market research
 reports, provides customized consulting services, and supplies continuous
 information solutions to the broadband, wireless, cable TV, satellite,
 Internet and competitive telephony industries. The Strategis Group's focus is
 pure telecommunications, providing strategic information to decision makers in
 the dynamic global marketplace.  For more information on Strategis
 dataBank(TM): World Cellular/PCS Handset Sales, please contact an account
 executive at 202-530-7500 (voice), 202-293-7933 (fax) or
 sales@StrategisGroup.com  (email).
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X96671555
 
 

SOURCE The Strategis Group, Inc.
    WASHINGTON, April 30 /PRNewswire/ -- The current telecommunications
 marketplace climate dramatically influenced handset sales growth during the
 first quarter of 2001, according to new findings from The Strategis Group. The
 handset vendor community saw sales growth slow down to just 12%, compared to a
 booming growth rate of 59% just a year ago. The Strategis Group, based on the
 findings from Strategis dataBank(TM): World Cellular/PCS Handset Sales,
 attributes the low growth numbers to the general economic slow down, along
 with slower growth in net additional sales, market saturation and lower than
 expected replacement sales.
 
     World Handset Unit Sales and Growth, 1Q1999-1Q2001
 
                Sales (millions)     Growth
     1Q1999           57               62%
     1Q2000           90               59%
     1Q2001           101              12%
 
     Source: The Strategis Group, Inc.
 
     "Vendors are experiencing high production costs and are unable to reap
 economies of scale necessary to make their handset business profitable," said
 Sylvia Panayi, Senior Analyst at The Strategis Group. "Net additional
 subscribers that represented 55% of the total sales in the first quarter of
 2000 are at about 38% in the first quarter of 2001.  The reduction in net
 additional subscribers is indicative of market saturation in Western Europe
 and certain Asian markets, which have reached penetration levels of 80%."
     The telecom industry has taking a financial beating with depressed stock
 prices and a cold shoulder from lenders.  Unfortunately, the handset market is
 being drawn into the downturn, which is affecting consumer sales.  The
 Strategis Group has been tracking the handset slowdown with the Strategis
 dataBank(TM): World Cellular/PCS Handset Sales, a unique database product that
 gives quarterly updated handset statistics.  The product provides current data
 on sales, manufacturer market share and forecasts for cellular/PCS handsets,
 tracking sales at the following levels: world, region, country and technology.
 Technologies tracked include Analog, TDMA, CDMA, GSM, PDC, PHS,GPRS, EDGE, 1X,
 1X/3X-EV, W-CDMA.
 
     The Strategis Group, a C7 company -- with offices in Washington, DC,
 London, Singapore, and Sao Paulo -- publishes in-depth market research
 reports, provides customized consulting services, and supplies continuous
 information solutions to the broadband, wireless, cable TV, satellite,
 Internet and competitive telephony industries. The Strategis Group's focus is
 pure telecommunications, providing strategic information to decision makers in
 the dynamic global marketplace.  For more information on Strategis
 dataBank(TM): World Cellular/PCS Handset Sales, please contact an account
 executive at 202-530-7500 (voice), 202-293-7933 (fax) or
 sales@StrategisGroup.com  (email).
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X96671555
 
 SOURCE  The Strategis Group, Inc.