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Asia-Pacific Region Poised for Strong Growth in Mobile Handsets - report
date: December 27, 2001

In a new Report, "Mobile Handset Trends in the Asia-Pacific Region," the Yankee Group has published a revised forecast and analysis of major market trends for mobile handsets in the region. The Report projects that the Asia-Pacific region will see strong handset sales growth in the coming years, buoyed by strong subscriber uptake and rapid migration to next-generation services.

The key findings and projections in the Report are as follows as of the end of 2005:

- Total handset shipments will rise from 162.3 million in 2001 to 296.2 million in 2005.

- With 3G taking a strong hold over regional markets by 2005, W-CDMA and cdma2000 1x-EV handset sales will dominate, with volumes of 129.3 million and 39.1 million, respectively.

While the Asia-Pacific region has already emerged as the largest cellular market in the world - evidenced by strong subscriber growth, especially in China and now India - the key driver for handset sales will be replacement sales, as subscribers rapidly upgrade their handsets to take advantage of next-generation services.

According to Shiv Putcha, analyst with the Yankee Group's Wireless/Mobile Asia-Pacific research and consulting practice, "The Asia-Pacific region's strong growth in cellular will extend to handset sales in the region as well. Given that GSM still dominates the Asia-Pacific landscape, it is crucial for its continued success that vendors like Nokia, Motorola, and Ericsson ease supply-side bottlenecks and ensure general availability of handsets for new GPRS and W-CDMA services. On the CDMA front, handset availability has been strong, but overall sales will be constrained by CDMA's second-place finish in the region to GSM and its migratory generics."