ex handsets get latin beat mobile users la turn music cameras 3g[1]

8/20/2019 EX Handsets Get Latin Beat Mobile Users LA Turn Music Cameras 3G[1]

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HANDSETS GET A LATIN BEAT REPORT EXCERPT

© 2008 Pyramid Research, www.pyramidresearch.com

While every effort has been taken to verify the accuracy of this information,Pyramid Research cannot accept any responsibility or liability for reliance by any

Report overview

Handsets Get a Latin Beat: Mobile Users in Latin America Turn to Music, Cameras and 3G

Over the past couple of years, the market for mobile handsets in Latin America has grownremarkably, driven by a healthy increase in mobile subscribers as well as by a vibrant replacementmarket. Device sales will increase further through 2012, with Brazil and Mexico the biggestopportunities. This profound transformation will involve such factors as rising mobile penetrationrates, adoption of 3G, a growing replacement market and demand for music and camera features.

Pyramid Research, in a Report titled Handset s Get a Lat in Beat : Mobil e Users in Lat in Ameri caTur n t o Music, Cameras and 3G , examines this transformation and what it means to bothhandset vendors and mobile operators. It looks at the underlying trends in the mobile market,including technology developments, mobile services demand, the competitive landscape, ARPS,

the battle between the two largest mobile operators in the region, handset revenue and unitsales, ASPs, demographic factors and market shares. The Report examines both relevant moves byoperators and the strategies of the major handset vendors in the market, including individualmarketing campaigns and promotions.

Key findings of the Report include:• Users are upgrading from voice-only phones to devices with music and camera capabilities.• Wide-scale deployment of 3G in Latin America is creating numerous opportunities for

handset manufacturers during the 2008-2012 period.• Sony Ericsson and LG have expanded their market shares in the region thanks to their strong

portfolios, effective marketing and above all their strategic alliances with mobile operators.• Working more closely with each other, mobile operators are actively promoting music

phones while vendors are launching new handsets with pre-loaded and exclusive content.

It not only looks at past and future developments in the overall regional market, but alsoexamines in detail the seven largest country markets: Brazil, Mexico, Venezuela, Argentina,Colombia, Peru and Chile. For each market, the Report provides a handset market overview,technology trends, handset price and revenue trends, an ASP forecast, sales of handsets by type ofbuyer, an analysis of the competitive landscape, a discussion of key recent campaigns and muchmore.


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Key questions answered

• How strong will the demand drivers such as subscription and penetration growth be inLatin America through 2012?

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How will 3G migrations affect handset demand in various countries, and when?• What role will mobile data uptake play?• How will the battle between América Móvil and Telefónica shape the region’s markets?• Can replacement sales keep the overall markets growing as subscriber growth slows?• How are vendors positioning themselves in the smartphone market? Where is smartphone

adoption strongest?• Which handset vendors are making inroads in which markets, and why?• How strong will adoption of cameras and music players be in various countries through

2012? How are operators marketing music phones most successfully?• Will replacement sales make up for declining new-subscriber sales in all top seven

countries?• What will the handset ASP be in the largest markets in Latin America in 2012? Market

revenue?

Target audience

Mobile network operatorsLearn where the opportunities are, and how large they are in your markets. Evaluate the relativestrengths of handset vendors and how they can best meet your needs. Gather insight into futuredevelopments through the Report’s extensive forecasting of multiple metrics for each of theregion’s top seven countries. Benchmark handset sales against competitors or other markets.Evaluate marketing strategies and identify those that meet your needs.

Handset vendors and distributors

Discover the markets where the opportunities match your strengths. Assess the strategies of yourcompetitors and learn how best to respond. Evaluate operators on their requirements to formpartnerships that build on what you can offer them.

Infrastructure equipment vendors Obtain data on past and future market trends for the seven largest markets in Latin America.Estimate adoption rates of new technologies and the level of infrastructure support required.Recognize the leading handset manufacturers in specific countries and the opportunities availableto you.

Software and mobile content providersFind out how the telecom market is changing in one of the most exciting regions of the world, andlocate opportunities for your content and applications. Learn what your existing and prospective

clients — whether handset manufacturers or operators — are doing, anticipate their challengesand align your offerings with their strategies.

Investors and financial institutionsLocate the markets where investment opportunities are greatest. Recognize the timeframes oftechnology changes that provide openings for new players to enter the market or for existingplayers to expand.


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Table of exhibits

Mobile subscriptions and penetration in Latin America, 2005-2012Key market indicators, 2007AMobile penetration by country, 2007Total mobile subscribers 2007Total mobile subscribers 2012Mobile subscriptions in Latin America by technology family, 2003-2012Countries in Latin America with 3G (UMTS-HSPA and CDMA EVDO)Total revenue, and data revenue as percentage of total revenue, 2005-2012Mobile data revenue mixARPS comparison by market (US$), 2007Data ARPS as a percentage of total ARPS, 2007Subscriber totals in Latin America by operator, 2002Subscriber totals in Latin America by operator, 2007Subscriber totals in Latin America by operator, 2012EAmérica Móvil: Key indicatorsAmérica Móvil’s market rank and market share at year-end 2007Telefónica: Key indicatorsTelefónica Movistar market rank and market share at year-end 2007Telefónica Móviles merged with Telefónica: New strategic modelSales of handsets to end users by category In Latin America, 2005, 2012Largest handset markets in Latin America 2007Total handset sales in Latin America, 2007Total market ASP 2006-2012Total market handset revenue 2006-2012

Total market ASP in top seven markets 2007Total market handset revenue in top seven markets 2007The size, growth and penetration of handset markets, 2007 (US$) New handset unit sales by technology group 2007 New handset unit sales by generation 2007Music handsets sold; music as percentage of handsets sold in Latin America, 2007-2012Music phones as percentage of handset sales in top seven markets, 2007Camera phones sold; camera phones as percentage of handsets sold in Latin AmericaCamera phones as percentage of total sales in top seven markets, 2007Smartphones sold; percentage of handsets soldSmartphones as percentage of total handset sales, 2007

Positioning of smartphone players in Latin AmericaHandset market share (sell-through), 2005-2009Market share of top five vendors vs. others 2005-2009 Nokia's share of Latin American handset market, 2007 Nokia's market share in top seven markets, 2007Global initiatives by NokiaMotorola's share of Latin American handset market, 2007Motorola's market share in top seven markets, 2007


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Argentina:Sales of handsets by category of end users in Argentina, 2005-2012 New handset sales by technology family 2007 New handset sales by generation 2007

Total market ASP in Argentina, 2005-2012Total market handset revenue in Argentina, 2005-2012Market shares of leading handset vendors in ArgentinaMarket shares of mobile operators in Argentina, 2005-2009Music phones sold; music phones as percentage of handsets soldCamera phones sold; camera phones as percentage of handsets soldPersonal's campaign offering free songs with selected devices from Motorola

Colombia:Sales of handsets to end users by category in Colombia, 2005-2012 New handset sales by technology croup 2007 New handset sales by generation: 2007

Total market ASP in Colombia, 2006-2012Total market handset revenue in Colombia, 2006-2012Market shares of leading handset vendors in Colombia, 2005-2009Market shares of mobile operators in Colombia, 2005-2009Music phones sold; music phones as percentage of handsets soldCamera phones sold; camera phones as percentage of handsets soldTour Viajero 2008 Movistar and Motorola partnership

Peru:Sales of handsets to end users by category in Peru, 2005, 2012 New handset sales by technology group 2007 New handset sales by generation 2007

Total market ASP in Peru, 2006-2012Total market handset revenue in Peru, 2006-2012Market shares of leading handset vendors in Peru, 2005-2009Market shares of mobile operators in Peru, 2005-2009Music phones sold; music phones as percentage of handsets soldCamera phones sold; camera phones as percentage of handsets soldMovistar in Peru targets the young

Chile:Sales of handsets to end users by category in Chile, 2005-2012 New handset sales by technology group 2007 New handset sales by generation 2007

Total market ASP in Chile, 2005-2012Total market handset revenue in Chile, 2005-2012Market shares of leading handset vendors in Chile, 2005-2009Market shares of mobile operators in Chile, 2005-2009Music phones sold; music phones as percentage of handsets soldCamera phones sold; camera phones as percentage of handsets soldMovistar Chile: BlackBerry handsets capable of surfing to Facebook


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Companies mentioned in this Report

Alcatel (TCT Mobile)

AlegroAmérica MóvilAncelAppleAT&TAudiovoxAvantelBellSouthBenQBrasil TelecomCantvCentennial CommunicationsClaro

ComcelCTIDigicelDigitelDisneyEntel PCSFacebookHaier TelecomHaitelHewlett-PackardHTCHuaweiIusacell

KyoceraLGMicrosoftMillicomMotorolaMovilnet

Movistar

Nextel (NII Holdings)NII Holdings (Nextel)Ningbo BirdNokiaOiOrangePalmPanasonicPantechPortaResearch in Motion (BlackBerry)SagemSamsung

SanyoSkyzenSonySony EricssonSprintTCT Mobile (Alcatel)TelcelTelecom Italia (TIM)Telecom PersonalTelecom VenezuelaTelefónicaTIM (Telecom Italia)Trilogy International Partners

UTStarcomVerizon CommunicationsVivaVivoZondaZTE


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About the authors

Omar Salvador, Senior Analyst

Based in Cambridge, Massachusetts, Omar Salvador is a Senior Analyst in the research team ofPyramid Research. Omar tracks and analyzes market developments and company strategies in thefixed and mobile communications markets in Latin America, with an emphasis on the Andean regionand Central America. A key area of focus is mobile devices. Omar works on Latin America MarketPerspectives, Forecasts, Reports and consulting projects. He has been quoted by publications suchas The New York Times, Business Week, Bloomberg, Dow Jones, AméricaEconomía and BNAmericas. He frequently appears in the industry press and has been interviewed on CNN enEspañol.

Prior to joining Pyramid, Omar worked for Institutional Shareholder Services as a global researchanalyst focusing on Spain and Latin America, producing analysis for a client base of institutional

investors on a variety of proxy voting issues such as mergers and acquisitions, debt issuances andcapital structure. Prior to this, Omar worked in marketing and sales in the consumer productsindustry for brands such as Colgate-Palmolive in Bolivia.

Omar is a graduate of Johns Hopkins University, where he earned his Master of BusinessAdministration degree with a concentration in International Business. He holds a Bachelor inBusiness Administration from Santa Cruz Private University (UPSA) and a one-year diploma inBusiness Administration from Georgetown University. Omar is fluent in English and Spanish.

Leslie Arathoon, Vice President of Research

Leslie Arathoon is Vice President of Research for Pyramid Research, responsible for managing the

company’s entire portfolio of research, advisory and consulting services. Prior to assuming hercurrent role, Leslie was Director of Product Strategy for Pyramid Research and Director of LatinAmerica. Pyramid’s Research’s Advisory Services provide detailed coverage and analysis of thecommunications, media and technology industries in 90-plus countries worldwide. She is based inthe company’s headquarters in Cambridge, Massachusetts.

Leslie has developed forecasting models to support Pyramid’s core advisory services, includingPyramid Research’s mobile data and mobile operator KPI forecasting models, its fixedcommunications forecasting model, its fixed operator market share model and its handset sell-through forecasting model.

In her 10-year tenure at Pyramid Research, Leslie has worked on a wide variety of consultingprojects, ranging from market sizing and market segmentation to market entry strategies and newproduct positioning, as well as valuations, due diligence and partner identification projects.


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Recent Research and Analysis from Pyramid Research

Mobile Handset ForecastForecasts published May 2008Updated on a quarterly basis, our Mobile Handset Forecast products provide a complete picture of handset sell-through in 19

Latin American markets. The Excel output includes five years of historical data and five years of market projections for metricssuch as total handset sales, handset sales by network technology, new handset sales (by technology, by technology generationand by feature set), smartphone sales, vendor market shares and handset ASP. We believe our Handset Forecasts are superiorbecause they capture sell-through (units sold to end users) rather than unit shipments (sales from manufacturers todistributors) and rely heavily on our Mobile Demand Forecasts. Moreover, they are based on extensive field research, and aconsistent methodology that is applied to all markets.

Mobile Demand ForecastForecasts published March 2008Updated on a quarterly basis, our Mobile Demand Forecast products provide complete pictures of demand trends for 18geographical markets in Latin America. The Excel output includes five years of historical data and five years of marketprojections for metrics such as GDP, mobile penetration, subscriptions (by operator, type of package, technology), ARPS andtotal mobile service revenue (data and voice). The Forecasts are based on extensive field research and use consistentmethodology across all markets, aiming to capture the total spending — from an end-user perspective — on mobilecommunication services in each market.

Mobile Data ForecastForecasts published March 2008Updated on a quarterly basis, our Mobile Data Forecast products provide complete pictures of demand trends for 18geographical markets in Latin America. The Excel output includes five years of historical data and five years of marketprojections for metrics such as penetration, mobile subscriptions (by type of package, by operator or MVNO and by networktechnology), users of specific data services (SMS, music, etc.), MOU, ARPS (by operator, by subscription type, by service, byapplication) and revenue. The Forecasts are based on extensive field research and use continually consistent methodology,aiming to capture the total spending on mobile data services in each market.

IMS Market Opportunities: From Standardization to ImplementationResearch Report published April 2008With network usage transforming the market, service providers are in a bind, and a new service delivery architecture, IMS, hasbeen touted as their solution. But there is plenty of controversy about the fundamental issues surrounding IMS. This report sortsout the issues and lays out the current status of the architecture, as well as its drivers, risks and opportunities. It also providesa timeline for standards developments and forecasts revenues from IMS-based services and IMS-compliant equipment through2012.

Mobile Data Best Practices: Positioning and Revenue Opportunities in Emerging and Developed MarketsResearch Report published April 2008

This report examines mobile data services, revenue trends and drivers for adoption, comparing market dynamics andopportunities in emerging and developed countries. It ranks current and projected top performers among countries and mobileoperators, and draws on numerous operator case studies and industry best practices, providing invaluable insight into businessopportunities for equipment and application providers as well as benchmarks for operators worldwide. The report identifiesmarket-tested strategies for positioning, pricing and promotion of mobile data offerings in different market environments —strategies that promise to encourage end-user adoption and increase data revenue per subscriber.

Bundling Notebooks and Mobile Broadband: The Business Case for MNOsResearch Report published March 2008This report analyzes the drivers for mobile operators to bundle mobile broadband services and PCs, as well as the effect of suchbundling on performance and operations. It leverages Pyramid Research’s unique Mobile Broadband PC survey, which coveredmore than 12,000 face-to-face interviews that explored consumer attitudes to mobile services, PCs and applications.

3G Migration in Latin America: A 131m Handset OpportunityLatin America Market Perspective published March 2008Mobile operators in Latin America are deploying 3G-networks, thus generating demand for UMTS/HSPA handsets. With fewmarkets left for expansion in the region and with organic growth slowing, America Móvil and Telefónica are now shifting their

attention to 3G services and applications in their battle for the region’s number one position. This Perspective examines thesizable opportunity created for handset vendors.

Social Networking Goes MobileResearch Report published February 2008Social networking services like MySpace and Facebook have emerged as some of the hottest Internet names, with daily news ofpartnerships, advertising initiatives and acquisitions. This report looks at the SNS business model and analyzes its future,forecasting the number of social networking members globally by 2012. It also assesses the future of mobile social networkingand the rationale for SNSs and mobile operators to collaborate, including the revenue mobile operators stand to gain. Finally,the report profiles some of the top players in the mobile social networking world.


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Whil ff t h b t k t if th f thi i f ti

Competition Heats up in Booming Latin American Smartphone MarketLatin America Market Perspective published November 2008Handset vendors and mobile operators in Latin America recently have introduced and actively promoted several smartphonemodels, including the Palm 680, BlackBerry Pearl, Nokia E62, Samsung BlackJack and Moto Q. Pyramid Research looks at theavailability and affordability of the smartphones, and the renewed interest from MNOs, to forecast the rate of growth for thissegment in the Latin American market.

WiMAX Business Models; Will New Networks Ever Become Profitable?

Report published November 2007WiMAX deployments continue to proliferate, with the technology adopted in more than 70 countries globally The business case,however, is yet to be proven, and the main question remains unanswered: how will WiMAX operators make money? Should aWiMAX business model resemble that of fixed broadband or 3G, a mix of the two, or something completely new? To ascertainwhether WiMAX is truly worth the risk, this report analyzes the business models as well as operating and financial metrics ofexisting and prospective WiMAX deployments in emerging and developed markets and those for enterprise use.

Additional products

Forecasts

Updated on a quarterly basis, our Forecast productsprovide a complete picture of demand trends affecting

each geographical market. The Excel output includesfive years of historical data and market projections,providing complete market-sizing and macroeconomicinformation. Available for Mobile Communications,Fixed Communications, Mobile Data, Mobile Enterprise,Mobile Handsets, Mobile Capex, Internet and Media,and Network Opex.

Country Intelligence Reports

Country Outlooks offer insightful analysis of a country'scommunications, media and technology industries,

including regulatory pressures and overall competitivelandscapes.

These data-intensive reports are published annually for68 countries worldwide, and illustrate key trendswithin given markets, making them an excellentcomplement to our Forecast products.

About Pyramid Research

Growth experts at the intersection of emergingmarkets and converging technologies

Leaders of the digital revolution depend on Pyramid

Research to develop winning strategies and dynamicbusiness models in the converging globalcommunications markets.

We advise decision-makers in the operator, vendor,regulator, consulting and financial service communitieson how to anticipate market trends, attack newsegments, respond to competitive threats, benchmarkperformance and capitalize on opportunities.

More than 20 years of unmatched global perspective

Pyramid Research uses a unique, structured, bottom-upmethodology to forecast demand. Unlike our

competitors, which provide general global answers byindexing data from a few select markets, we fullysegment and analyze the competitive landscapes ofnearly 100 countries and consistently aggregate data tobuild our local, regional and global forecasts.

We conduct our own primary research in every countryand develop scenarios for growth across technologiesby assessing existing and emerging business models.

This methodology and intelligence are the foundationsfor our industry-renowned forecasts, which are themost comprehensive demand, growth and market sharetracking services available in the industry today. Thisunparalleled quantitative foundation assures clientsthat advice from Pyramid Research is reliable, relevant

and actionable.

To obtain more information or to purchase a product, contact Pyramid Research at:+1.617.494.1515 or [email protected] or www.pyramidresearch.com

ex handsets get latin beat mobile users la turn music cameras 3g[1]

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