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| Tuesday, 22 January 2008 | |
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Bad news for ultra-low cost cellphones: users in
Ultra-low cost (ULC) handsets are seen as a key component in attracting the next billion mobile phone subscribers into the market. However, research company In-Stat has found consumers in “The ultra low-cost handset may be a driver in bringing the next billion users to cellular,” says David Chamberlain, In-Stat analyst. “but refurbished and low-cost feature cell phones may have even more impact in expanding usage in developing countries, especially where users have already experienced cell phone ownership and enjoyed the benefits of advanced features.” The In-Stat study, ‘ · the greatest interest in advanced features is among people who have already used cell phones extensively · residents of major Indian cities are more likely to prefer full-featured cell phones · battery life is a key purchase factor in a country with poor basic infrastructure · the average price survey respondents expect to pay for a mobile phone is US$40 The In-Stat findings could be bad news for operators such as Vodafone which last year launched its first ULC phones (manufactured by With its own take on the handset recycling business ABI Research last month published some results from its analysis ‘Handset Recycling and Refurbishment’. This study suggested that shipments of recycled handsets would exceed 100mn units in 2012, Shorter handset replacement periods, growing demand for low-cost devices in emerging markets, regulatory requirements, and growing consumer awareness were key factors cited for driving the market for recycled handsets. “Mobile phone recycling companies such as ReCellular, Fonebak, and Eazyfone are witnessing good market growth, but increasing consumer awareness and retrieving used handsets at affordable prices are still key challenges,” said ABI Research industry analyst Shailendra Pandey. “Also, the ASP of used handsets falls rapidly, so these handsets need to be handled at the lowest possible cost to ensure decent margins on their resale.” Even so ABI Research expects the market for recycled handsets to grow steadily in the next five years, generating over US$3bn in revenue in 2012. John Williamson |
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