Low-end, ultra-low-cost mobile phones are being pushed into emerging markets in large numbers. Meanwhile, at the high-end, wireless communications service providers are continuing to demand lower-cost 3G mobile phones in order to spur greater consumer adoption of 3G services. These two factors are driving down the overall ASP in 2005 and 2006. |
Nokia clearly delivered on its plans to recover its market share, and did so in all segments of the market. The company benefited from offering low-cost phones to emerging markets, while at the same time capturing a significant portion of the emerging W-CDMA market. |
Service providers are pushing to get the price below $30. |
This development indicates the mobile-phone market is becoming increasingly competitive, and only the big and strong [manufacturers] can survive. |