March 17, 2005
Here are some stats from the TIA on wireless growth:
Wireless handset spending in the United States will rise to $13.3 billion in 2008 from 10.1 billion in 2004, growing at a 7.0 percent compound annual rate. This growth is attributable to increased functionality as well as increases in subscribers. As overall subscriber growth slows and new users provide less of a boost than in the past, the replacement market will become the primary focus to increase subscribers.
Camera phones are one of the most popular features and are estimated to comprise 60 percent of shipments by 2006. Smart phones, which combine a phone with other applications such as an organizer, are an emerging segment of the market. Smart phones comprised about 2 percent of the market in 2003 and are expected to increase as much as 25 percent by 2010.
Overall handset unit sales in the United States rose 10.2 percent in 2004 to 74.2 million. With prices increasing slightly to an average of $137 and increases in the replacement market, spending on handset units rose 11.9 percent, to $10.2 billion in 2004. (Prices for handsets turned around in 2004 and will continue to edge up to $156 in 2008 as new features increase costs.) Handset sales are projected to rise to 85.3 million by 2008, representing a 3.5 percent CAGR.
To view figures on wireless handset revenue in the United States, see http://www.tiaonline.org/media/press_releases/uploads/WirelessHandsets.jpg.