Researcher Predicts Mobile Slowdown In 2005
Pent-up demand for new phones will wane as the next wave of mobile technology is slow to develop, according to IDC.
The mobile industry had a banner year in 2004 but will experience a slowdown in 2005 while faster 3G services and applications are being implemented, according to an IDC study released Tuesday.
The study found that sales of mobile phones increased by 20 percent this year compared to 2003. The increased sales were led for demand for phones with color displays and cameraphones, IDC said. But the next stage for the wireless industry is 3G and that deployment is going slowly, IDC said.
"Without a doubt, many pieces of the 3G puzzle are falling into place," Alex Slawsby, an IDC senior analyst, said in a statement. "Continued delays in the evolution of compelling 3G services and content, however, remain. Although 3G mobile phone volume will grow, a relatively prolonged transition period from 2.5G to 3G will leave the mobile phone market with a weaker set of demand catalysts in 2005."
Specifically, the study said it will be 2006 before 3G starts to gather significant momentum in the U.S., Europe and the Asia/Pacific region. 3G phones will represent about 25 percent of all mobile phone shipments in 2007, according to the study.
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