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Example research essay topic: Mobile Phones Million Units - 1,585 words

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What is 3 G? 3 G - or 3 rd generation - technology supports the broadband, packet-based transmission of text, multimedia data - such as audio, video and digitized voice - at a high data rate. It will greatly enhance the next generation of mobile communication services, providing always-on connectivity to phones and other wireless communications, regardless of time and place. 3 G has been endorsed by major standards bodies and manufacturers. WCDMA is the leading 3 G standard. It has been endorsed by all major OEMS and operators. What does 3 G mean for developers? 3 G is another network pipe, so in most cases developers do not need to explicitly program for it any more than they program for a GSM or GPRS network. However, the enhanced bandwidth and the always-on nature of 3 G removes some practical limitations on the types of services that developers can deliver.

What services will 3 G enable? No single 3 G application will dominate the market. High-speed content like video-on-demand, multimedia and always-on Internet access are just a few possibilities. Nokia believes Multimedia Messaging Service (MMS) will be one of the first successful services on the market. Is 3 G too far out to make application development profitable? The 3 G network roll-out is in process, but the applications that will work best over 3 G already work on today's networks.

MMS, OTA download of Java applications, and browsing applications are already in use today. As 3 G bandwidth becomes more widely available, developers can enhance existing applications with richer graphics and other data-intensive services. When will WCDMA 3 G networks be available? Nokia is already rolling out its 3 G network solutions. The first Nokia WCDMA and EDGE networks will be launched commercially during the second half of 2002. Current Market Situation The current market share held by the 4 major producers of mobile communications in the 3 rd quarter of 2002 was as follows: 1.

Nokia V 35. 9 % 2. Motorola- 14. 4 % 3. Samsung- 10. 6 % 4. Sony-Ericsson- 4. 8 % For the past 3 years, the mobile communications industry has taken a significant downturn. The value of the market has decreased in the region of billions of euro.

The downturn of the industry can be attributed to three main causes: 1. Investors have somewhat lost confidence in the hi-tech industries and hence now the trailing mobile communications industry 2. Market Saturation experienced by the mobile industry 3. The product life cycle of the 2 G mobile phone has progressed to the decline stage, resulting in a significant drop in sales Until recently there has not been any major technical advancement in the mobile phone over the last 3 years. Due to poor technical specifications and inflated expectations (due to the promotional strategies undertaken), WAP (Wireless Application Protocol) enabled handsets and other internet based communications devices were commercial failures which was reflected in the poor unit sales figures for the period. With the prospect of the 3 rd generation of mobile phones coming onto the market between 2003 & 2006, the industry has started to become more lucrative.

Worldwide mobile phone sales in the 3 rd quarter of 2002 totalled 104. 3 million units (a 7. 8 % increase from the same time 1 yr prior. Information source: Dataquest Inc) Nokia expects the market to grow to between 440 million- 460 million units in 2003 overall. However business analysts generally think to be around 435 million in the 2003 financial year. Nokia believe that Europe is the major market where consumers are looking to upgrade their handset in 2003. Mobile phone subscribers will be looking to replace their old phones with the new breed of mobiles available at the moment with digital camera/ colour screen capabilities. Confirmation of this trend in the industry is by the sheer volume of people signing up for the new MMS (Multimedia Messaging Services), 20, 000 for T-Mobile in Germany alone, and 30, 000 in the UK for Vodafone, all in a 6 month period.

The popularity of the SMS (Short Message Service) has been the main contributor to this new breed of messaging. When 3 G is introduced it will have all the capability that these new phones have and more. However, by the time 3 G is incorporated into the market place, MMS will be widely accepted and the cost of the service will have decreased. Producers of mobile communications such as Nokia & Sony Ericcson, along with the network providers T-Mobile, Orange, Vodafone & O 2 are expecting that the introduction of the new MMS services will enable them to achieve the growth objectives & provide a new untapped resource of revenue from increased unit sales.

Although this new MMS service will most definitely cause an upturn in a currently flagging market, it should not be relied on too heavily as a main source of revenue or selling point. Sending of MMS messages is still very expensive in comparison to SMS texting. Also, the handsets which have the capability to do so are still particularly expensive & may be out of reach (financially) to those who send most messages (88 % of all messages are sent buy under 22 year olds and most of them in the teen market). The current market trend of SMS messaging should not be neglected as it currently accounts for 12 % of the total revenue generated for network providers.

PEST Analysis Political and Legal Factors Political factors have increased in toughness for mobile phone operators as phones become more advanced. In particular the way in which billing information is handled in the future will be affected by new anti-terrorist legislation imposed by the government. The 3 G mobile phones are expected to obtain data pinpointing the whereabouts of the mobile phone user to within a couple of meters. It is proposed this information is retained in the future for longer periods than mobile operators have done so in the past in order to attempt to locate criminal movement. The government have invested in independent research into health affects of mobile phones. The outcomes have been inconclusive, however scientists have stated the use of mobile phones does affect brain activity.

This is not proof of damage, however the government are keen to have an answer and this could affect the use of future mobile phones. The intervention of government noticing the escalating crimes focused on or around mobile phones has an impact on their development. The phones have to be less appealing to thieves by some form of internal security as phone thieves begin to target children equipped with a mobile phone by parents or guardians for safety reasons. Copyright and Patents of new developed technology has to be conformed by for ourselves and others. Economic Factors The current economy in the UK is very strong, boasting high employment and a high average age. In such situations the public have increased disposable income enabling a trend to spend money on luxury items.

Should the economy begin to slow down and many of the population fearing recession, sales of 3 G mobile phones would suffer. Businesses and individuals unsure of their financial standing would begin to spend less on items not deemed necessary. The way of avoiding such dramatic affects of economic change is to perceive the goods as 'must have' products. Marketable to businesses as a return on investment due to increased efficiency could be argued.

This is less likely to be adopted by individual users. Social Factors There is increasing concern with the number of masts being erected which form the networks supporting the mobile phones. As the number of mobile phone users increase, and we move into 3 G technology where a higher number of masts are required to support the technology; the public are becoming concerned of the impact masts are having upon their immediate environment. Although masts have reduced in height, this reduction has been accompanied with need for them to be closer to the user.

It is necessary to be sympathetic to these concerns and where possible disguising the masts will show an increased attention to the public. Public users have a desire to request information and receive this immediately, this has become a priority in today's fast moving society. This means people have less patience to wait for the information desired and this is reflected in the culture of mobile phone use. 3 G has the capability to transfer desired information that is up to date, directly to the handset being used Technological Factors The increasing capability of electronics in continually smaller packages enables additional technology to be included with limited affect on the size of the product. This has had a great impact on the capability of mobile phones.

With ability to gain remote access to the internet it is possible to bring the internet information direct to a mobile phone user. Development of 3 G technology is expensive and time consuming Threats and Opportunities THREATS: Market Saturation It is estimated 73 % of adults own or use a mobile phone (oftel research), thus indicating the market is reaching saturation point with fewer new customers entering the market. Children with mobile phones do not have the justified spending on their phones to be considered the target audience. Also the purchase expense will have to be covered by a third party, generally the parents or guardians who can be reluctant to buy the latest models for children. Competition from other mo...


Free research essays on topics related to: mobile phones, million units, unit sales, g mobile, current market

Research essay sample on Mobile Phones Million Units

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