News

LOS ALTOS, CA – Driven by strong economic conditions and a continuing wireless boom, world communication equipment production bounded ahead by 12.6% during 2006, according to the latest Henderson Ventures forecast.

However, slower economic growth and a tail off in the mobile communication sector will create a sharp deceleration in equipment growth this year, the firm says.

Global output is expected to increase by only 6%. However, this year’s loss of momentum represents something of a timeout rather than a fundamental change in the fortunes of the communication sector, Henderson reports. In fact, growth rates will accelerate once again, reaching a 10.1% pace in 2009.

Handset growth to ease the mobile telephone industry, including handsets and infrastructure, will be hitting a fundamental roadblock within the next few years, as the number of new subscribers dwindles because of market saturation among global consumers who can afford a subscription, the company says.

And given the forecast for a gradual leveling of the subscriber base, the handset forecast also calls for a slowdown. It is believed that the age of 20+% growth rates are behind us. However, growth rates in the vicinity of 10% through 2009 can be expected.