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November 28, 2012

Mobile communications equipment market to reach $376bn by this year: report

Mobile communications equipment revenue is expected to grow at a compound annual growth rate of 11% over the next five years until 2016

By CBR Staff Writer

Factory revenue of original equipment manufacturers making mobile communications equipment is expected to grow 13% this year to reach $376bn from $334bn recorded during 2011, according to report by IHS iSuppli.

According to IHS iSuppli Wireless Systems Market Tracker the revenue will be driven by growth in shipment of mobile handsets and tablets, particularly devices supporting the 4G long term evolution (LTE) wireless standard.

The revenue includes mobile communications equipment like smartphones and other handsets as well as wireless infrastructure gear such as routers.

In 2013, overall revenue for mobile communications equipment is projected to reach $444m.

IHS wireless communications senior principal analyst Francis Sideco said the wireless equipment market is growing this year despite facing daunting economic headwinds, including the slowdown in China and the turmoil engulfing the euro zone.

"To be sure, growth this year will be lower than the much more sizable expansion of 29 percent in 2011," Sideco said.

"However, the market’s double-digit rise in 2012 is a testament to the ongoing appeal of cellphones and tablets to global consumers. The increasing deployment of LTE is also a considerable factor, which will continue to spur the market."

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Mobile communications equipment revenue is expected to grow at a compound annual growth rate of 11% over the next five years until 2016.

The semiconductor market for mobile communications is expected to grow 5% to $74bn by the end of 2012, up from $71bn generated in 2011.

Spending on 4G LTE is expected to more than double to $8bn by the end of this year, from $4bn spent in 2011.

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