IDC finds mobile phone market in need of new growth catalyst

In one of the most negative mobile phone forecasts to date, IDC is predicting a slowdown in the mobile handset industry in 2005. “After several years of new purchases and replacements and upgrades driven by color and cameras, a new catalyst must emerge if the market is to continue to expand at its current rate.” Apparently it is the slow development of mobile content that will be the restraining factor. “Continued delays in the evolution of compelling 3G services and content, however, remain. Although 3G mobile phone volume will grow, a relatively prolonged transition period from 2.5G to 3G will leave the mobile phone market with a weaker set of demand catalysts in 2005.”

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