Wireless gear sales to grow 1% in 2004
The industry’s global sales are expected to inch up 1% to $46.8 bln this year, following last year’s 2% increase, according to Yankee Group. However, that will be followed by a 14.5% decline through 2008 to $40 bln. The wireless equipment industry hit a peak in 2000 when global sales reached $54.5 bln, but fell to $45.2 bln in 2002. Between 2002 and 2007, equipment expenditures as a%age of total revenue of wireless service providers will decline from 11.3% to 6.8%. Pricing pressure also will continue as annual price declines near 20% are expected. Last year, Sweden’s Ericsson dominated the market with a 29% share, followed by Finland’s Nokia and Germany’s Siemens AG with 13% and 11%, respectively. Motorola Inc. was next with 10%, followed by Lucent Technologies Inc. and Nortel Networks Corp. at 9% each, and France’s Alcatel with 6%.