Global Wireless Handset Market Grows 23% in 2006 and Will Reach $250 Billion by 2011

In.Stat: The market for wireless handsets was $110 billion in 2005. It will grow 23%, to exceed $136 billion in 2006. It will continue to grow but at a slower rate exceeding $250 billion in 2011. To put this in perspective, if wireless handsets were a sovereign country, it would be the 53rd largest economy, right behind Ireland, but growing more than twice as fast as China. This growth is not preordained. It depends upon phone manufacturers continuing to add features that consumers value and that the rest of the industry can support. The greatest challenge is to just add the features different customers want without adding unneeded cost or complexity from unneeded or unwanted features. T The goal for wireless phone manufacturers is to make customers forget they ever tolerated a phone without the new innovations. This has happened as the mobile phone has advanced dramatically in the past several years. Vvery few US users, less than 5%, do not use at least one of the technological innovations introduced over this period. Consumers seem ready to embrace other new features, including location-based services and Bluetooth connectivity, but only a narrow segment have interest in multimedia features and camera phone use will see a decline. The primary changes in phones over the next five years are that they will become more capable, incorporate beefier security, and be more targeted as organizations have greater involvement in the wireless service decisions of their employees. Perhaps more importantly, they will help us be safer.

• Worldwide sales of mobile phones will rise from 935 million units in 2006 to more than double that in 2011.

• SmartPhone sales will surpass 480 million units by 2011.

• Motorola was by far the most popular phone brand among survey respondents who obtained their phone through work.

The Big Trends For Cell Phones, 2006-2011 Publ 20060517