As companies continue to buckle down to weather the recession cold, mobile phone companies are striving to stay afloat amid competition and recession fears by targeting the emerging markets and by offering innovative services at competitive prices. They are currently focusing all their energies on the emerging markets in the developing countries, as seen by NTT DoCoMo's move into India. These newer markets comprising of Latin America, Greater China, Middle East and Africa, are expected to account for around 70 percent of the mobile handset sales in the future. Definitely a large piece of the pie....The mobile phone industry is no doubt treading the path of recession but newer markets are opening up and developing to upkeep sales figures. The telecom industry is still in an early stage in many countries, which are becoming fertile for mobile mania. As companies are cutting costs and harnessing newer technologies to stay profitable, they are also forced to follow aggressive pricing strategies to beat the competition. While mature markets are becoming saturated, smartphones are slowing picking up. Studies have revealed that mobile phones are a necessity and users are willing to cut costs on their landline phones or cable rather than give up their mobile phones. Emerging markets, on the other and, are still price sensitive and are a bigger market for the low and mid-range phones. Mobile phone companies are thus able to withstand because of their sheer geographical range, across the whole world.
As a financial advisor would say,"You should really diversify your portfolio...."
Australian Chris
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