Strategy Analytics: Curitel aggressive for $19 million Verizon Handset Sales

Boston, MA & London, UK - February 21, 2004 /Wi-Fi Technology News/- Strategy Analytics views handset maker Curitel's bid for a controlling interest in Audiovox as a strong positive move for the Korean manufacturer in its quest to establish a much clearer roadmap for its wireless carrier partners.

Audiovox has seen its market share fall from 9 percent in 2000 to less than 3 percent in 2003, as delays and misaligned feature set configurations sabotaged its ability to carve a profitable niche with its sourced products.


Chris Ambrosio, Director of the Strategy Analytics Wireless Device Service (WDS), states, "Working with Sharp, Toshiba, and Curitel, Audiovox struggled to define its profit target niche through 2002 and 2003. Curitel is likely to consolidate its product line within the Audiovox brand and make a strong value statement to the entry-level market at Verizon. With cameraphone expertise in its domestic Korean market and a willingness to embrace differentiated form factors, Curitel has a clear value statement to the high-end camera phone market. While Audiovox' brand value is flagging in the US with low single-digit brand awareness among end users, a weak brand is better than no brand at all. With this action, Curitel also gains an established entry to Sprint PCS and, if properly positioned in a coordinated sales message, Curitel can take a giant leap forward from where it would be trying to break into the market on its own."

David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds, "Toshiba wished to be free to exploit its own strong brand with flow-through impacts from its high performance notebooks and other electronics product portfolio. Now, Toshiba is faced with bowing to the wishes of a threatening competitor targeting the same segment Toshiba has traditionally targeted. Toshiba, a minority interest holder at Audiovox, is likely to lose its opportunity for garnering a meaningful share of the 19 million units flowing through to end users at Verizon Wireless."


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

US Contact:
Chris Ambrosio, +1 617 614 0723, cambrosio@strategyanalytics.com
David Kerr, +44(0) 1582 405678, dkerr@strategyanalytics.com