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Monday, October 17, 2005
Dean Bubley asks why is it that the mobile phone industry (and its financial watchers) still clings to "volume market share" as such an important indicator? Given that phone prices span the range from $30 to $1000, surely it's an increasingly irrelevant statistic. He points out that just as watch manufacturers tend to quote revenue numbers rather than units. And if people do comment on volumes, they focus on a specific segment like "fashion watches" and all types of watches are not bundled together for financial analysis.I agree that the mobile market is getting stratified with multiple segments and special products like Vertu targeting niche markets.The mobile volume growth may come from the lower end of the market – profits may not come from this segment more instead the key is developing the feature rich phone markets. Profit margins, volume of sale woud have to be read together – and If I may add the R&D spend may become an important lead indicator as well as niches are seen to be giving better returns.
Category :Mobiles |
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