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July 12, 2010

Global ULC PhonesHandsets Market to Reach 622.2 Million by 2015: Report

The release of a global report on ULC or Ultra Low Cost Phones/Handsets market has been announced by Global Industry Analysts, Inc. or GIA. By 2015, the global ULC Phones/Handsets market is expected to reach about 622.2 million. Factors such as proliferation of mobile communication services, price sensitivity of consumer clusters in the lower income bracket are driving the growth in the market. The growth is also driven by social responsibility measures taken by the Governments. This will ensure that the underprivileged classes of society will be able to avail and afford mobile communication services.

Great business interests in ULC phones are shown by several large mobile phone manufacturers. This is despite the limitations posed by a low tier market on the conventional profitability. Handset manufacturers and mobile service providers are forced to focus on the opportunities unfurling in the developing markets due to the maturation of the developed markets and current economic pressures. Usage of local-content for offering value-added data services and reduction in tariffs and taxes charged by the government on handsets and their services are some of the other factors which are driving this growth.
Lesser-developed countries, such as, Bangladesh, India, and Nigeria have more pronounced opportunities. Strong growth in the upcoming years is forecasted for the BRIC nations which include Brazil, Russia, India and China. The sales of low-cost handsets are expected to be led by China in term of volumes. ULC phones are emerging into prime beneficiaries of the economic meltdown in developed markets like North America, and Western Europe with the changing consumer purchasing patterns. Consumers are now moving down to low cost phones.
Huawei Technologies Co Ltd, Kyocera Communications Inc, LG Electronics Inc, Motorola, Nokia (News - Alert) Corporation and Samsung Electronics Co Ltd are some of the key players in the market. Sony Ericsson Mobile Communications AB and Zhong Xing Telecommunication Equipment Company Limited are also among other key players.
A review of noteworthy market trends, growth drivers and challenges is provided by GIA's report "ULC (Ultra Low Cost) Phones/Handsets: A Global Strategic Business Report".  Recent acquisitions and other strategic industry activities are also included in this report. Further information on this report is available at

Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin's articles, please visit his columnist page.

Edited by Erin Harrison


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