Entry Level Mobile Dominate 14 Million Unit Brazil Handset Market


Manufacturing Efficiency and Pervasive Distribution Favor Nokia But Siemens Will Challenge

Boston, MA & London, England - April 7, 2004--/Wi-Fi Technology News/-
Strategy Analytics, the global research and consulting company, today released its new report, "Brazil Mobile Sales Grow 20 Percent through 2005: Siemens Leads Entry Tier GSM Mass Market Volumes." The Strategy Analytics Wireless Device Strategies Service highlights the impressive growth in one of Latin America's most populated and advanced countries, and forecasts significant investment into the Brazilian cellular market over the short term.

Sales reached 14 million units in 2003, and will grow to 17 million units in 2005, with mobile growth being fueled by two factors. First, major carriers are increasing investment in network overlays, banking on future data revenues, which will require new data and rich-media friendly devices. Second, major handset manufacturers are committing funds to expand production in Brazil, to meet both domestic demand and the continued export demand to North America.

David Kerr, Vice President of the Strategy Analytics Wireless Practice, notes "Seventy-five percent of handset sales were in the entry tier in 2003. Despite the evolution to data services this is expected to remain relatively constant through 2008 Driving growth in this market will require manufacturers to aggressively reduce the total cost of manufacturing handsets to below $100 for CDMA and below $85 for GSM handsets."

Strategy Analytics projects that overall handset demand for the entry priced mass market will be led by Nokia and Siemens, putting pressure on Motorola and Samsung. The author of the report, Eddie Tapiero, an analyst with the Wireless Device Strategies service, comments, "Brazil's relative market size and per capita income make it one of the most attractive emerging markets in the world, along with China and India. For vendors that can profitably produce entry level mobile devices in compelling designs, Brazil represents a large opportunity."



About Strategy Analytics
Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see http://www.strategyanalytics.com


Contacts:

Christopher Ambrosio, +1 704 894 9684, cambrosio@strategyanalytics.com
Eddie Tapiero, +1 617 614 0704, etapiero@strategyanalytics.com
David Kerr, + 1 262-646-8974, dkerr@strategyanalytics.com

European Contact:
Sara Harris, +44(0) 1908 423 624, sharris@strategyanalytics.com