|Source: Company data, Wireless Oracle |
* = averaged from annual figure
The table shows, from taking the most recent four quarters, that the annual market is worth $34.3 billion, though, as Brown points out, "this would flatter the GSM/UMTS market somewhat, since Nortel Networks Corp. (NYSE/Toronto: NT) in particular, and to a lesser extent Ericsson, also sell CDMA equipment." The most recent quarter saw these five firms collectively report wireless kit revenues of nearly $7.5 billion. On this basis Ericsson is easily the market leader, with Nokia second, and Siemens third. This makes the networks division of Siemens Information and Communications Mobile the "world’s number three wireless equipment vendor -- just edging out the leading CDMA vendors, Motorola Inc. (NYSE: MOT) and Lucent Technologies Inc. (NYSE: LU), which reported third-quarter revenues of $1,014 million and $882 million, respectively." Motorola, which generates 35 percent of its wireless equipment revenues from GSM, versus 42 percent from CDMA and 23 percent from iDEN, will be analyzed along with Lucent and other major CDMA suppliers in the next Wireless Oracle report. Brown believes Siemens has a relatively stable GSM business and has solid ground in the UMTS market through its partnership with NEC Corp. (Nasdaq: NIPNY). And he is "pleasantly surprised by the relative strength of Alcatel’s wireless equipment business. The focus on low manufacturing and operating costs is setting the trend for the competition." The report looks at the revenues, margins, prospects, and debts of these top five players, as well as the competitive threat they face from up-and-coming players such as Huawei Technologies Co. Ltd. and LG Electronics Inc. — Ray Le Maistre, European Editor, Unstrung The full report, "Survival of the Slimmest: Competitive Positioning in GSM and UMTS Infrastructure Markets," costs $400. An annual subscription to Wireless Oracle is ordinarily $1,250 but is currently available at the special introductory price of $899. For more information, including subscription information and research examples, please visit: Wireless Oracle.
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