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Cell Phones Near Market Saturation
November 15, 2005 |Estimated reading time: Less than a minute
LOS ALTOS, Calif. — Mobile phone markets in developed economies are approaching saturation, shows the recent Henderson Forecast Summary. With market penetration for these devices at 120% in Luxembourg (with 120 subscribers for every 100 inhabitants), the saturation point has been exceeded, shows OECD data. While this trend may not be reflective of other countries, penetration rates for most developed countries inch up beyond 80%. Still, it seems that the U.S., Japan and Canada are slightly behind others.
Significant growth is anticipated in the next few years with subscriber numbers in India and China climbing. Penetration is not expected in these areas, however, because of economic restrictions or selection of "bare-bones" services that bring in little revenue for service providers. The availability of 3G services, downloadable music phones and IPTV models in the U.S. will help boost handset sales in the developed world, shows the forecast. But because many subscribers recently upgraded their services to color screens and cameras, growth rates during 2006–2007 are expected to lag. Growth will begin again with double-digit increases in 2007 — after a slight gain of 8.8% in 2006.