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Strategy Analytics: US Handset Sales Top $10 Billion in 2002; Wholesale



RELATED SYMBOLS: (NOK)(MOT)

BOSTON, Jan 28, 2003 (BUSINESS WIRE) -- The most recent Strategy Analytics
Report, "Handset Strategies Driving $10 Billion Market," indicates that Nokia,
Samsung, and Motorola lead all vendors in profitability strategies, targeting
sales in profitable mid- and high-tiers.

Published by the Strategy Analytics Wireless Device Strategies Services, the
report reviews the winning and losing strategies of the top seven US handset
vendors, and the complementary strategies of the top four wireless carriers to
drive profitability and replacement sales by upgrading customers from basic
entry level to more profitable, feature rich, data enabled handsets.

"The battle for share in mid- and high-tier segments is becoming increasingly
competitive," states Chris Ambrosio, Director of the Strategy Analytics Wireless
Device Strategies Service. "Vendors who have established brand support have been
able to successfully penetrate these profitable market tiers. Brand awareness
and quality will be vital to any vendor's efforts to sustain volume sales in
these tiers. Vendors without brand power are looking for technical or marketing
advantages to sustain volume sales of lower profit units in lower tiers."

David Kerr, Vice President of the Global Wireless Practice at Strategy Analytics
adds, "Despite the launches of data services from Verizon and Sprint, CDMA sales
of US$100 or less will account for 42 percent of US CDMA volume in 2003. Vendors
and carriers will eventually drive higher priced replacement sales, but vendors
like Kyocera are currently successful in this entry tier by leveraging design
efficiencies and working closely with their carrier partners. In 2003, the most
interesting battle will occur in the high end GSM product tiers as Nokia and
Samsung attempt to define to form factor and feature sets for emerging GSM/GPRS
handsets."


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
www.strategyanalytics.com.


CONTACT: Strategy Analytics, Inc.
US Contact:
Chris Ambrosio, 617/614-0723
[e-mail]
or
David Kerr, 617/614-0717
[e-mail]
or
European Contact:
Neil Mawston, [phone]
[e-mail]

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KEYWORD: MASSACHUSETTS UNITED KINGDOM FRANCE GERMANY INTERNATIONAL
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
NETWORKING
TELECOMMUNICATIONS
HARDWARE
SOURCE:
Strategy
Analytics,
Inc.

(Wall Street)





Daniel Nieves