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Issue #2003 - 23 (August 2003)
(Updated Aug. 19, 2003)


Market Outlook News This Week

1. Nokia Targets Higher CDMA Market Share
Nokia recently hinted that its share of the CDMA handset market has grown due to increased sales in the U.S., China, and India. The company hinted that its current CDMA market share is in the "mid-teens" and said that its goal is to win 25 percent of the CDMA phone market by 2005. Nokia is targeting both CDMA handsets and wireless chips as the company looks beyond GSM. Earlier this year Nokia announced the formation of a new CDMA chip venture.

2. U.S. photo messaging market to reach $440M by 2008
According to a new study by the Zelos Group, the U.S. market for photo messaging services is expected to grow from $10.3 million in 2003 to $440 million by 2008. The study predicts that in the short term camera phones will not replace high quality digital cameras. Camera phones will be used for social interaction and for posting quick pictures to the Web. The study does predict that the market will eventually emerge for high-end digital camera phones, but that these handsets will not arrive in the U.S. in volume for 18 months. High-end camera phones will not rival stand-alone digital cameras until 2005.

3. IDC: US Carriers Target Youth
IDC Research says that many US-based wireless carriers will extend their marketing campaigns towards youth and young adults. The firm expects that as subscriber growth slacks over the next few years, that carriers will have to adopt new, untraditional business models to attract this market. The youth market is said to be the most hopeful prospect for increased wireless adoption over the next five years. Currently, only 28 percent of consumers ages 10 to 19 are wireless users with their own devices. IDC expects that this statistic will increasingly grow, resulting in the need for new business models, differentiated services, strong youth brands and clever marketing. (Source: Cellular-News.com)

Source: Fiercewireless and others

MobileInfo Comments and Advisory: Zelos forecast that photo messaging market will grow to $440 million is reasonable and achievable. The clincher will be the tariff for sending these pictures while you are away from home. Carriers may be listening.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.

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