Cell Phone Shipments to hit 1 Billion

Friday, May 12, 2006

Cell phones are becoming more and more popular and shipments of cell phones are expected to break the 1 billion barrier before the end of the year. This huge increase in cell phone shipment is fueled by the uptake of cheap models in developing countries. Huge growth has been seen in countries such as India which is enthusiastically taking up cell phone technology which is at its highest rate in 2 years.

This prediction is partly based on the 31% growth in cell phone shipments in the last quarter of 2005. However it is expected that this increase will not translate to an increased profit for cell phone manufacturers such as Motorola and Nokia.

Motorola has currently closed the gap with market leader Nokia. However it seems that although they have performed well in volumes the need to compete in the low cost markets looks like profit ceilings have been to be reached.