Nokia and Ericsson to Benefit From Strong Smartphone Momentum
November 09, 2011 08:16 ET
Nokia and Ericsson to Benefit From Strong Smartphone Momentum
The Bedford Report Provides Equity Research on Nokia & LM Ericsson
NEW YORK, NY--(Marketwire - Nov 9, 2011) - The booming adoption and usage of smartphones has made for some great opportunities in the Communication Equipment Sector. One opportunity stems from the fact that smart phones create about ten times more network traffic than regular mobile phones. While the secular shift towards smartphones has created major market opportunities, it has also created an inordinate amount of competition. The Bedford Report examines the outlook for the Communications Equipment Industry and provides equity research on Nokia Corporation (
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According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 393.7 million units in 3Q11 compared to 348.9 million units in the third quarter of 2010. However, the 12.8% growth was higher than IDC's forecast of 9.3% for the quarter and stronger than the 9.8% growth in 2Q11. "The combination of economic uncertainty and anticipation over fourth quarter or late third quarter product releases caused some consumers to delay their smartphone purchases," said Kevin Restivo, senior research analyst with IDC's Worldwide Mobile Phone Tracker.
Global overall handset shipments increased 14 percent from a year earlier to 390 million units, the U.K.- based researcher, Strategy Analytics said. Nokia had dropped 5 percentage points to 27.3 percent while Samsung Electronics Co. climbed to 22.6 percent. ZTE with 4.7 percent, overtook Apple at 4.4 percent. LG Electronics was the third, the statement said.
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New report from Ericsson says mobile data traffic will grow 10-fold between 2011 and 2016, mainly driven by video. Mobile broadband subscriptions grew by 60 percent in one year and are expected to grow from 900 million in 2011 to almost 5 billion in 2016.
Mobile broadband, new smartphone launches and applications uptake will continue to drive data consumption. At the same time, there is strong momentum for smartphone uptake in all regions. Ericsson expects traffic generated by advanced smartphones to increase 12-fold to roughly equal mobile PC-generated traffic by 2016.
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