Nokia Siemens Networks Competition
Now Viewing Nokia Siemens Networks's competition in: Telecommunications Equipment Manufacturers
Recent Developments
US Mobile Phone Penetration Rate Higher than Canada's - The US continues to have higher mobile phone penetration than Canada. The mobile phone penetration rate reached 82.5 percent in North America as of the end of first quarter 2008, according to cellular-news. The US penetration rate was 84.9 percent and Canada's was 60.5 percent. The US is North America's largest cellular market, with almost 93 percent of the region's mobile customers.
Industry Hikes Production Levels - US makers of communication equipment are increasing output to keep up with demand. Domestic communication equipment manufacturer production rose 23.7 percent in May 2008 from year-earlier levels. Average annual output increased over 72 percent in five years, due to a rise in military orders, new nonresidential construction, and consumer use of mobile phones.
Imports Grow, but Sourcing Varies - US imports of communication equipment, competition for domestic producers, rose 17.2 percent during the first four months of 2008 compared to a year earlier. The value of imports from the top three trading partners increased: China's share grew 10.1 percent; Mexico's, 21.8 percent; and Korea's, 42 percent. Imports from Malaysia, the fourth-largest provider, declined. Notably, Japan's share increased almost 70 percent.
Competitive Landscape
The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from $500,000 to $1 million.
Full Industry Overview For Telecommunications Equipment Manufacturers
Telecommunications Equipment Manufacturers Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2007 and 2012.
Communication Equipment Production Growth Low After Spike
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Market saturation
- Need technical expertise
- Risk: Slowing economy pushes consumers to low-margin products
Industries Where Nokia Siemens Networks Competes
- Telecommunications Equipment
- Wireless Telecommunications Equipment
- Wireless Broadband Service Equipment
- Wireline Telecommunications Equipment
- Copper Wire Switching & Transmission Equipment
- Optical Switching & Transmission Equipment
- Wireless Telecommunications Equipment
