Latest Mobile Industry Research

Mobile Subscriber Growth in the USA

The number of U.S. cell phone subscribers is expected to increase more than threefold over the next four years, contributing a significant amount of revenue that carriers derive from data services. The number of subscribers is projected to reach 300 million by 2015 from about 100 million this year. Even though only 10 percent of all U.S. subscribers are expected to pay for mobile video and television content and services, they are expected to become significant contributors to the average revenue per user (ARPU) carriers derive from the data networks. Broadband video/TV services should increase from less than half of all data revenues last year to about 85 percent of the total in four years. A consumer survey suggests that a mix of on-demand clips and live streaming content are the most appealing.

$12 Billion Mobile Data Service Market in the USA

More than 229 million U.S. wireless subscribers are spending an average of $6.00 per month on data services, contributing a total of $4.1 billion in revenue for 3Q06 alone, according to the latest IDC research. Ringtone sales set to reach 1 billion by 2010. Most Popular wireless data services:

  • Text messaging is the most popular with nearly 50% of the data revenue coming from it.
  • Business- and consumer-oriented services and content constituted is about 40%.
  • Content and simple application downloads came to about 12%.

Worldwide Mobile Phone Shipments Surpass One Billion Unit Mark in 2006

Led by strong demand in emerging markets including India and China, worldwide mobile phone market reached a new milestone as vendors shipped a total of 1.019 billion units in 2006, a 22.5% increase from 832.8 million units they shipped in 2005, according to IDC. Mobile phone shipments into emerging economies in Asia/Pacific, Central and Eastern Europe, the Middle East, Africa, and Latin America have surpassed shipments to mature markets, and the difference between the two continues to grow.

The 4th quarter also set a record for a single quarter shipments with 294.9 million units, 19.7% more than the 246.4 million units during 4Q05.

Nokia continues to be the undisputed worldwide leader in mobile phone shipments, with more than a million units shipped on average each day during the quarter. Motorola, Samsung, Sony Ericson, and LG Electronics roundup the Top 5 vendors.

Mobile Enterprise Application Market to Reach $3.5 Billion by 2010

Driven by mobile employee, the mobile enterprise application market reached $1.2 billion in 2005 and is expected to grow at double digit 23% CAGR to hit $3.5 billion in 2010, according to IDC. "The worldwide growth of cellular networks, the proliferation of handheld devices, and a general level of 'connection' in individuals' personal lives are quickly finding their way into the enterprise," said Mary Wardley, vice president of IDC's CRM applications research.

This study indicates that the entry into mobile enterprise applications is one that all enterprise applications vendors must consider and include in their applications portfolio to a greater or lesser extent.

In order to be successful, IDC recommends that vendors realign their understanding of the user experience in the context of mobile enterprise applications. The value to the user will be increased by what is not visible to them by virtue of the behind-the-scenes automation.

Mobile Game Purchasers to Reach 50 million by 2010; Subscription Model Emerges

Mobile game purchasers will grow more than 16% annually reaching nearly 50 million customers by 2010, which will substantially increase total mobile gaming revenue by the end of the decade, according to IDC. A recent IDC survey shows that:

  • 11% of respondents purchased at least one game for their wireless device in the third quarter of 2006.
  • Teens and adults under 24 years of age made up the core of this gaming constituency.
  • For 3Q06, IDC survey respondents reported spending an average of $13.00 on wireless games, with reported spending inversely correlated with the purchaser's age.
  • More than three quarters of all games being purchased by respondents as of 3Q06 were based on a one-time unlimited use model.

IDC predicts that the price per mobile game will rise more than $2.50 by 2010 due in part to the impact of growing subscription revenues. IDC suggests that subscription-based channels will gain traction and represent a third of total revenue by the end of the decade - Game bundles, flat subscription fees that include access to multiple games, weekly game rentals, pay-per-play and other models today compliment the standard one-time purchasing model or single-game monthly subscription model.

Source: IDC (January 2007)