Strategy Analytics: $88 Billion Technophile & Business Pragmatist Market to Fund 3G
Wireless Operators Losing Loyalty Battle to Handset Brands
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As vice president of marketing and customer care for Canon Computer Systems, Inc., Bergman spearheaded the development and implementation of Canon's U.S. printer and computer peripherals business strategy and marketing plan, resulting in sales growth from zero to $1 billion in four years. Prior to joining Canon in 1992, he was director of product management for Epson America, Inc., where he was responsible for marketing and product planning. Bergman was also vice president, consumer marketing for Print Technology Inc., and served as a product manager at Atari, Inc.
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BOSTON & LONDON--(BUSINESS WIRE)--July 15, 2004--According to new research from Strategy Analytics, Technophiles and Business Pragmatists generate $88 billion in cellular service revenues in the US and Western Europe, even though these early adopters have their allegiances firmly in the device camp. According to, "Operators Trail Handset Vendors in Mindshare & Loyalty among Technophile & Business Pragmatist 3G Visionaries," operators will ultimately extract better lifetime value from mass-market and late adopters of new mobile technologies.
While most laptops today feature integrated wireless connectivity, that is, they already have everything they need to connect to a wireless connection, some do require the use of a plug in card. standard PCMCIA (Personal Computer Memory Card International Association) slots on your laptop (the PCMCIA slots are the little doors on the side of your laptop which are about the width of a mobile phone and around half a centimetre thick). Once the card is plugged in and set up (youa ll need to install appropriate driver software), youa ll be able to connect to a wireless network.
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This latest research from the Strategy Analytics Wireless Network Strategies service provides a detailed profile of seven segments with distinct behavioral traits and motivations in the cellular market, emphasizing the challenge operators face in building a strong 3G business. The two early adopter segments account for 24 percent of users in both regions, 23 percent of lifetime value to operators, but 38 percent of handset market retail value.
But the iPhone's wireless capabilities aren' -we don' Fi will work for syncing data with a computer. One thing Apple did tell us is that you won't be able to use the iPhone as a wireless Bluetooth modem for a laptop (at least that's the current plan). generation (3G) -3G networks are faster than AT & T's EDGE network.
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"Tech-savvy early-adopters just don't have the customer loyalty profiles on which operators can build long term 3G business models," comments David Kerr, Vice President of the Global Wireless Practice at Strategy Analytics. "Technophiles and Business Pragmatists will be the first to adopt 3G services, however operators will need to lean heavily on handset partners to keep these segments happy, and offer frequent subsidies to meet their vicious handset replacement cycles."
Owned by the Dow Chemical Company, the two firms said the move is designed to align their business growth strategies with direct market and customer focus.
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"It is ultimately the mass market where greater operator value exists," adds Phil Kendall, Director, Wireless Network Strategies. "Digital Youth and Messengers in Western Europe, and Voice Planners in the US, offer greater lifetime value to operators than early adopters. Profitability will ultimately be driven by meeting the more modest needs of these users for location services, m-payments and photo messaging rather than chasing mobile video applications."
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For a chart, "Wireless Network Strategies: User Base Segmentation-Western Europe & North America," please see www.strategyanalytics.com/press/pr00126.htm.
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About Strategy Analytics
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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.
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