Mobile Phones in Canada

Published on May 2016 | Categories: Types, School Work | Downloads: 23 | Comments: 0 | Views: 208
of 34
Download PDF   Embed   Report

Mobile Phones in Canada

Comments

Content



www.datamonitor.com
Datamonitor USA
245 Fifth Avenue
4th Floor
New York, NY 10016
USA

t: +1 212 686 7400
f: +1 212 686 2626
e: [email protected]
Datamonitor Europe
Charles House
108-110 Finchley Road
London NW3 5JJ
United Kingdom

t: +44 20 7675 7000
f: +44 20 7675 7500
e: [email protected]
Datamonitor Germany
Kastor & Pollux
Platz der Einheit 1
60327 Frankfurt
Deutschland

t: +49 69 9754 4517
f: +49 69 9754 4900
e: [email protected]
Datamonitor Asia Pacific
Level 46, 2 Park Street
Sydney, NSW 2000
Australia


t: +61 2 8705 6900
f: +61 2 8705 6901
e: [email protected]


Mobile Phones in Canada
Industry Profile
Reference Code: 0070-0152
Publication date: December 2009

ABOUT DATAMONITOR


All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by
any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of
the publisher, Datamonitor plc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.
Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based
on information gathered in good faith from both primary and secondary sources, whose accuracy we are
not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions
taken based on any information that may subsequently prove to be incorrect.

Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 2
ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry
analysis.
Through its proprietary databases and wealth of expertise, Datamonitor provides
clients with unbiased expert analysis and in depth forecasts for six industry sectors:
Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial
Services.
The company also advises clients on the impact that new technology and
eCommerce will have on their businesses. Datamonitor maintains its headquarters in
London, and regional offices in New York, Frankfurt, and Hong Kong. The company
serves the world’s largest 5000 companies.
Datamonitor's premium reports are based on primary research with industry panels
and consumers. We gather information on market segmentation, market growth and
pricing, competitors and products. Our experts then interpret this data to produce
detailed forecasts and actionable recommendations, helping you create new business
opportunities and ideas.
Our series of company, industry and country profiles complements our premium
products, providing top-level information on 10,000 companies, 2,500 industries and
50 countries. While they do not contain the highly detailed breakdowns found in
premium reports, profiles give you the most important qualitative and quantitative
summary information you need - including predictions and forecasts.
EXECUTIVE SUMMARY



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 3
EXECUTIVE SUMMARY
Market Value
The Canadian mobile phones market grew by 17.9% in 2008 to reach a value of
$1,183 million.
Market Value Forecast
In 2013, the market is forecast to have a value of $1,491 million, an increase of 26%
since 2008.
Market Volume
The market grew by 8.6% in 2008 to reach a volume of 14 million units.
Market Volume Forecast
In 2013, the market is forecast to have a volume of 16 million units, an increase of
13.4% since 2008.
CONTENTS



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 4
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
CHAPTER 1 Market Overview 7
1.1 Market Definition 7
1.2 Research Highlights 7
1.3 Market Analysis 8
CHAPTER 2 Market Value 9
CHAPTER 3 Market Volume 10
CHAPTER 4 Competitive Landscape 11
CHAPTER 5 Leading Companies 14
5.1 Motorola Inc. 14
5.2 Nokia Corporation 18
5.3 LG Group 25
CHAPTER 6 Market Forecasts 28
6.1 Market Value Forecast 28
6.2 Market Volume Forecast 29
CHAPTER 7 Macroeconomic Indicators 30


CONTENTS



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 5
CHAPTER 8 Appendix 32
8.1 Methodology 32
8.2 Industry Associations 33
8.3 Related Datamonitor Research 33
CONTENTS



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 6
LIST OF TABLES
Table 1: Canada Mobile Phones Market Value: $ million, 2004-2008...............................9
Table 2: Canada Mobile Phones Market Volume: Units million, 2004-2008....................10
Table 3: Key Facts: Motorola Inc. ...................................................................................14
Table 4: Key Financials: Motorola Inc.............................................................................17
Table 5: Key Facts: Nokia Corporation...........................................................................18
Table 6: Key Financials: Nokia Corporation....................................................................24
Table 7: Key Facts: LG Group........................................................................................25
Table 8: Key Financials: LG Group.................................................................................27
Table 9: Canada Mobile Phones Market Value Forecast: $ million, 2008-2013..............28
Table 10: Canada Mobile Phones Market Volume Forecast: Units million, 2008-2013.....29
Table 11: Canada Size of Population (million) , 2004-2008..............................................30
Table 12: Canada GDP (Current Prices, $ billion), 2004-2008 .........................................30
Table 13: Canada Inflation, 2004-2008.............................................................................30
Table 14: Canada Exchange Rate, 2004-2008.................................................................31


MARKET OVERVIEW



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 7
CHAPTER 1 MARKET OVERVIEW
1.1 Market Definition
The mobile phone market consists of all analog and digital handsets used for mobile
telephony. Market volumes for a given year are defined as the number of shipments
to end-users, including both new uptake and renewal purchases. Market values are
given at retail selling price (RSP). Any currency conversions used in the creation of
this report have been calculated using constant 2008 annual average exchange
rates.
For the purpose of this report the Americas is deemed to comprise of Argentina,
Brazil, Canada, Chile, Colombia, Mexico, Venezuela, and the US.
1.2 Research Highlights
The Canadian mobile phone market generated total revenues of $1.2 billion in 2008,
representing a compound annual growth rate (CAGR) of 16.2% for the period
spanning 2004-2008.
Market consumption volumes increased with a CAGR of 10.4% between 2004-2008,
to reach a total of 13.7 million units in 2008.
The performance of the market is forecast to decelerate, with an anticipated CAGR of
4.7% for the five-year period 2008-2013, which is expected to drive the market to a
value of $1.5 billion by the end of 2013.
MARKET OVERVIEW



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 8
1.3 Market Analysis
The Canadian mobile phone market had been growing at a healthy rate over 2005-
2008, but will show a small decline in 2009. This will increase once again in 2010 and
into the forecast period.
The Canadian mobile phone market generated total revenues of $1.2 billion in 2008,
representing a compound annual growth rate (CAGR) of 16.2% for the period
spanning 2004-2008. In comparison, the US and Mexican markets grew with CAGRs
of 5.8% and 27.1% respectively, over the same period, to reach respective values of
$9.8 billion and $1.3 billion in 2008.
Market consumption volumes increased with a CAGR of 10.4% between 2004-2008,
to reach a total of 13.7 million units in 2008. The market's volume is expected to rise
to 15.5 million units by the end of 2013, representing a CAGR of 2.5% for the 2008-
2013 period.
The performance of the market is forecast to decelerate, with an anticipated CAGR of
4.7% for the five-year period 2008-2013, which is expected to drive the market to a
value of $1.5 billion by the end of 2013. Comparatively, the US and Mexican markets
will grow with CAGRs of 4.7% and 10.8% respectively, over the same period, to
reach respective values of $12.4 billion and $2.2 billion in 2013.
MARKET VALUE



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 9
CHAPTER 2 MARKET VALUE
The Canadian mobile phones market grew by 17.9% in 2008 to reach a value of
$1,183 million.
The compound annual growth rate of the market in the period 2004-2008 was 16.2%.
Table 1: Canada Mobile Phones Market Value: $ million, 2004-2008

Year $ million C$ million % Growth

2004 649.7 693.0
2005 670.3 715.0 3.20%
2006 695.9 742.3 3.80%
2007 1,003.5 1,070.4 44.20%
2008 1,183.2 1,262.1 17.90%

CAGR, 2004-2008: 16.2%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Canada Mobile Phones Market Value: $ million, 2004-2008

Source: Datamonitor D A T A M O N I T O R

0
200
400
600
800
1,000
1,200
1,400
2004 2005 2006 2007 2008
$

m
i
l
l
i
o
n
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
%

G
r
o
w
t
h
$ million % Growth
MARKET VOLUME



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 10
CHAPTER 3 MARKET VOLUME
The Canadian mobile phones market grew by 8.6% in 2008 to reach a volume of 14
million units.
The compound annual growth rate of the market volume in the period 2004-2008 was
10.4%.
Table 2: Canada Mobile Phones Market Volume: Units million, 2004-2008

Year Units million % Growth

2004 9.2
2005 10.3 12.20%
2006 11.5 11.50%
2007 12.6 9.40%
2008 13.7 8.60%

CAGR, 2004-2008: 10.4%

Source: Datamonitor D A T A M O N I T O R

Figure 2: Canada Mobile Phones Market Volume: Units million, 2004-2008

Source: Datamonitor D A T A M O N I T O R

0
2
4
6
8
10
12
14
16
2004 2005 2006 2007 2008
U
n
i
t
s

m
i
l
l
i
o
n
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
%

G
r
o
w
t
h
Units million % Growth
COMPETITIVE LANDSCAPE



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 11
CHAPTER 4 COMPETITIVE LANDSCAPE
The mobile phones market will be analyzed taking mobile phone manufacturers as
players. The key buyers will be taken as network operators and independent retailers,
and entities providing technology, equipment and parts for mobile telephone
manufacture as the key suppliers.
Buyers in the market include both network operators and independent retailers.
Despite a difference in their size, both will find it necessary to stock the latest
handsets to meet end-user demand and therefore are in a weaker position than
market players. Although buyers can sometimes negotiate contracts in their favor, the
products are highly important to the success of their business, weakening their
power.
Suppliers provide software and parts for manufacture of mobile phones and such
technology is often highly specialized and leaves manufacturers reliant on this supply,
particularly as some parts can be unique to a certain manufacturer. Despite this, the
larger size of manufacturers in comparison to suppliers gives them a strong position
in the supply chain. In many countries, rivalry in the market is increased by a high
penetration of mobile phones. Network operations diversification into handset
production has put manufacturers under enhanced pressure.
The mobile phone market will be analyzed taking handset manufacturers as market
players. Buyers in the market fall into two categories. Firstly, independent retail
outlets and big store retailers, purchase handsets to sell on to end-users. Mobile
network operators constitute the other section of buyers in the market, although some
of these operators are vertically integrated and have their own retail outlets.
There are a small number of large mobile network operators, giving them some
negotiation muscle when bidding for contracts with market players. However it is
necessary for all buyers to stock the latest innovative products if they want to meet
end-user demand and this diminishes their strength in the supply chain. Both network
operators and retailers are occasionally able to win exclusive deals with
manufacturers. Overall buyer power is moderate.
Suppliers within the mobile phones market are those entities providing technology,
equipment and parts for mobile telephones manufacture. This includes highly
specialized software and electronic components. Other suppliers are those providing
advertising and marketing services.
COMPETITIVE LANDSCAPE



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 12
Manufacturers are much larger companies than suppliers and therefore they have the
ability to influence supply contracts. For example, Nokia carry out assessments on
their suppliers to make sure they meet standards. However this is partly because
market players are so heavily reliant on the quality and efficiency of the software and
products provided. Moreover some of the software, such as integrated circuits, can
be specific to the company, which again increases dependence upon suppliers.
Ethics is important in the supply chain too and manufacturers have to be careful who
they choose to provide their supplies.
Currently there are ethical issues concerning the usage of tantalum purchased from
the Congo, as it is believed to help funding civil war in the region. Suppliers provide
services to a wide range of industries, particularly in the electronics field, and
therefore revenues generated from supply to mobile phones are not highly important
to them. The same can be said for marketing and advertising companies that provide
services to the mobile market. There has been an increase in raw material prices
such as steel in recent years, which could adversely affect manufacturers' margins.
Overall supplier power is moderate.
The threat of new entrants in this market is moderate. It would be possible to enter as
a company already involved in a similar operations, such as electronics and diversify
into mobile production. Such scenario reduces the impact of divesting assets, as the
company’ structure and much of the raw materials used for manufacture are the
same.
This strategy is demonstrated by Apple, which is known for producing computers, but
has now successfully entered the mobile market with the iPhone. Recently, this new
type of mobile phone - smartphone - is increasing in popularity, with Apple’s iPhone,
Research in Motion’s Blackberry, HTC’s Hero, and the Palm Pre all examples of
newcomers successfully entering the market in recent years. Smartphone’s offer PC
like functionality, along with the basic functions of a regular mobile phone.
All of the established mobile phone manufacturers are now following suit by launching
their own smartphones, which suggests that this section of the market is likely to see
significant growth over the next few years, luring newcomers with revenue
perspective.
However to enter the market as a completely new entity would be problematic, with it
necessary for companies to both operate scale economies to compete with
incumbents and the need for upfront investment of large sums of money. Capital
outlay involving research and development in new technology and production
facilities would be costly. Restrictions in the mobile phone market mostly relate to
human health and safety and the environment.
COMPETITIVE LANDSCAPE



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 13
There are stringent laws relating to science-based regulation and the adoption of
emission guidance by the International Commission on Non-Ionizing Radiation.
Furthermore mobile manufacture is closely monitored with studies being conducted
on the possible side effects of electromagnetic fields produced by mobile phones.
Strong growth rates have enhanced the attractiveness of this market.
Fixed line telephones are a substitute to mobile phones but with modern time pressed
lifestyles and the importance of fashion accessories in Western cultures, this threat is
seen as minimal. In fact, the two products are seen as providing different benefits
especially with integrated services they offer. Many mobiles now provide their users
with the internet, TV, GPS and mp3 functions.
Laptops also offer many of the features that mobile phones are marketed on, like
internet access, email, TV, GPS and music. However, most laptop users will also own
a mobile phone and in fact the two devices could be seen as complementary,
considering the ability of mobiles to synchronize with other devices. Overall the threat
of substitutes is weak.
This market is mostly dominated by a few large well known companies such as LG,
Nokia and Motorola, which intensifies competition. Also present in the market,
however, is a second tier of small manufacturers with phones that are targeted
towards niche markets or produced for specific regions. Market penetration is high in
Western markets and in such market conditions, well established mobile phone firms,
such as Motorola, have responded by creating growth opportunities through a high
generation of replacement handset sales.
Fixed costs are high and there is a need to continually invest in new technologies.
Companies like LG have diversified operations and manufacture consumer
electronics such as plasma TVs and home appliances including microwaves and
vacuum cleaners, which reduces exit barriers to some extent. Mobile network
operators offering mobile phones under their own brand, pressurize mobile phone
manufacturers to sustain a strong brand image and manufacture innovative products
which increase competition in the market. Overall rivalry is moderate.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 14
CHAPTER 5 LEADING COMPANIES
5.1 Motorola Inc.
Table 3: Key Facts: Motorola Inc.

Address: 1303 East Algonquin Road, Schaumburg, Illinois 60196
USA
Telephone: 1 847 576 5000
Fax: 1 847 576 5372
Website: www.motorola.com
Financial Year-End: December
Ticker: MOT
Stock Exchange: New York Ticker

Source: Company Website D A T A M O N I T O R

Motorola provides wireless handsets, wireless communications systems, broadband
systems, and public safety and surveillance products. It is one of the major providers
of end-to-end networks used for the delivery of video, voice and data services.
Motorola provides technologies, products and services for a broad range of mobile
solutions. The company's portfolio of offerings includes wireless handsets, wireless
accessories, digital entertainment devices, wireless access systems, voice and data
communications systems, and enterprise mobility products.
The company provides fixed and mobile solutions for consumer, enterprise and
governments markets. It operates in the Americas; Europe, Middle East and Africa;
and Asia Pacific. It is headquartered in Schaumburg, Illinois and employs
approximately 64,000 people.
The company operates through three reportable business segments: mobile devices,
home and networks mobility, and enterprise mobility solutions.
The mobile devices segment designs, manufactures, sells and services wireless
handsets.
The segment offers handsets with integrated software and accessory products, as
well as licenses intellectual property. It markets products globally to carriers and
consumers through direct sales, distributors, retailers and, in certain markets, through
licensees. The company has reduced the number of product platforms that it
supports, increasing emphasis on 3G and smartphone devices and maintaining its
focus on CDMA (code division multiple access) and iDEN (integrated digital
enhanced network) platforms.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 15
The home and networks mobility segment designs, manufactures, sells, installs and
services digital media products and wireless access systems. Its digital media
portfolio includes digital video, internet protocol (IP) video and broadcast network
interactive set-tops, end-to-end video delivery systems, broadband access
infrastructure platforms, and associated data and voice customer premise equipment
to cable television and telecom service providers.
The segment's wireless access systems include cellular infrastructure systems and
wireless broadband systems for wireless service providers. The segment's home
business portfolio includes MPEG (moving picture experts group) video encoding
equipment for standard definition and high-definition television (HDTV); video
processing and multiplexing systems; and video-on-demand, switched digital video
and conditional access systems used by network operators and programmers to
deliver video programming.
It provides an array of digital entertainment devices supporting analog, digital and IP
video delivery, including HD and digital video recording (DVR) (together, HD/DVR)
applications. It supports the delivery of high-speed data and voice services with head-
end and central office equipment, along with data and voice modems and gateways
for HFC (hybrid fiber coaxial) and DSL (digital subscriber line) networks and optical
line and optical node terminals for PON (passive optical networks) networks.
The networks business provides end-to-end cellular networks, including radio base
stations, base station controllers, associated software and services, application
platforms and third-party switching for CDMA, GSM (global system for mobile
communications), iDEN and UMTS (universal mobile telecommunications system)
technologies. The segment also offers a portfolio of WiMAX (worldwide
interoperability for microwave access) products and LTE (long term evolution)
technology to enable next-generation mobile IP broadband access.
The segment's products are marketed primarily to cable television operators, telecom
operators, wireless service providers, television programmers and other
communications providers worldwide.
The enterprise mobility solutions business designs, manufactures, sells, installs and
services analog and digital two-way radio, voice and data communications products
and systems for private networks, wireless broadband systems and end-to-end
enterprise mobility solutions to a wide range of enterprise markets, including
government and public safety agencies, as well as retail, energy and utilities,
transportation, manufacturing, healthcare and other commercial customers.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 16
In the government and public safety market, the segment offers an portfolio of
standard products and services that meet evolving public safety and security needs,
including products based on both TETRA (terrestrial trunked radio) and APCO
(association for public safety communications officials) standards. In the commercial
enterprise market, its products and systems provide information at the point of
business activity, connect seamlessly, and present tools to control the mobile
experience.
Its products include two-way radios, mobile computing products, advanced data
capture products including barcode scanners and imagers, RFID (radio frequency
identification) infrastructure, software management, security tools and wireless
infrastructure.
The segment's products and services are offered as stand-alone or as an integrated
solution through Motorola's direct sales force and through independent and
authorized distributors, dealers and value-added resellers, independent software
vendors, original equipment manufacturers and service operators. The segment also
provides systems engineering, installation and other technical and systems
management services.
The company's mobile devices operations are headquartered in Libertyville, Illinois.
Its major facilities are located in Plantation, Florida; Beijing, Hangzhou, Nanjing and
Tianjin, China; Seoul, South Korea; Chennai, India; and Jaguariuna, Brazil. It also
uses several electronics manufacturing suppliers (EMS) and original design
manufacturers (ODM) to meet consumer demand. It sources a significant portion of
its handsets from non-affiliated EMS and ODM manufacturers, primarily by two third-
party manufacturers in China. In 2008, its handsets were primarily manufactured in
Asia (China) and Brazil.
The home and networks mobility operations are headquarters in Horsham,
Pennsylvania. Its other major facilities are located in Arlington Heights, Illinois; San
Diego, California; Taipei, Taiwan; Bangalore, India; Beijing and Tianjin, China; and
Reynosa, Mexico. In addition to own manufacturing, the segment utilizes non-
affiliated EMS and ODM, primarily in Asia.
The enterprise mobility solutions segment's primary offices are located in
Schaumburg, Illinois and Holtsville, New York. Its other major facilities are located in
Penang, Malaysia; Reynosa, Mexico; Krakow, Poland; Berlin, Germany; and Arad,
Israel. In addition to own manufacturing, the segment utilizes non-affiliated EMS and
distribution and logistics services providers.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 17
Key Metrics
Motorola, Inc. generated revenues of $30.1 billion in the financial year ended
December 2008, a decrease of 17.7% compared to the previous year. The company
reported a net loss of $4.2 billion in fiscal 2008 compared to a net loss of $4.9 billion
the previous year.
The mobile devises segment took revenues of $12.1 billion, accounting for 40.1% of
the total annual revenues for Motorola, Inc.
Table 4: Key Financials: Motorola Inc.

Metric 2004 2005 2006 2007 2008
Revenues 29,680.0 35,310.0 42,847.0 36,622.0 30,146.0
Net Income 1,532.0 4,578.0 3,661.0 -4,900.0 -4,244.0
Profit Margin 5.2% 13.0% 8.5% -13.4% -14.1%
Total Assets 30,922.0 35,802.0 38,593.0 34,812.0 27,869.0
Total Liabilities 17,591.0 19,129.0 21,451.0 19,365.0 18,362.0
Employees 68,000 69,000 66,000 66,000 64,000

All in $ millions, except for employee numbers and margins

Source: Company Filings D A T A M O N I T O R

Figure 3: Revenues & Profitability: Motorola Inc.

-10,000.0
0.0
10,000.0
20,000.0
30,000.0
40,000.0
50,000.0
2004 2005 2006 2007 2008
Year
U
S
$

M
i
l
l
i
o
n
s
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
P
r
o
f
i
t

M
a
r
g
i
n

(
%
)
Revenues Net Income Profit Margin

Source: Company Filings D A T A M O N I T O R

LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 18
5.2 Nokia Corporation
Table 5: Key Facts: Nokia Corporation

Address: Keilalahdentie 2-4, FIN-00045 Nokia Group, Espoo, FIN
Telephone: 358 7180 08000
Fax: 358 7180 38787
Website: www.nokia.com
Financial Year-End: December
Ticker: NOK
Stock Exchange: New York

Source: Company Website D A T A M O N I T O R

Nokia Corporation (Nokia) is a leading provider of mobile devices, telecom
equipments, and mobile content services. The company's offerings include basic and
high end mobile devices, telecom network equipment and related services, and
software and services consumers markets. It provides network equipment and related
through a joint venture with Siemens, Nokia Siemens Networks.
Its other major subsidiaries include NAVTEQ, a provider of digital map information
and related location based content and services, and Symbian, the developer and
licenser of Symbian open source operating system for mobile devices. The company
primarily operates in Asia and Europe. It is headquartered in Finland and employs
about 121,723 people.
In 2008, the company reorganized its operations into three operating segments:
devices and services, NAVTEQ and Networks.
The devices and services segment comprises three units: devices, services and
markets.
The devices unit develops and manufactures mobile devices primarily based on the
GSM/EDGE (global system for mobile communications/enhanced data rates for
global evolution), 3G/WCDMA (third generation/wideband code division multiple
access) and CDMA global cellular standards. Its devices also feature non-cellular
technologies such as Bluetooth, WLAN (wireless local area network) and GPS (global
positioning system). The unit also offers high-end converged devices, such as Nokia
N series and Nokia E series smartphones. In 2008, the company shipped 61 million
converged devices.
The devices unit is aligned with five product categories: connect, achieve, explore,
live and entry.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 19
The connect category mobile devices maintain a balance between price, functionality
and style. Devices in this category have mainstream features, including megapixel
cameras, music players and navigation functionality. The company's mobiles
released during 2008 in this category include Nokia 6210 Navigator, Nokia 6220
classic and Nokia 6600 fold.
The achieve category is focused on advanced mobile devices targeted at business
users. This category includes the company's flagship range of Nokia E series
devices. Nokia E series devices feature both cellular connectivity, such as GSM and
3G/WCDMA, and non-cellular connectivity, such as WLAN.
They also support network connectivity, personal information management, email and
corporate telephony (PBX) system access, device management and security
solutions. In this category, the company partners with leading industry players in
corporate mobility like Alcatel Lucent, Cisco, IBM and Microsoft.
The explore category focuses on advanced devices optimized for creating, accessing
and sharing multimedia content. The category includes the company's N series range
of multimedia computers. The explore combines various functionalities, including
music players, cameras, pocket computers, gaming consoles and navigation devices.
The live category of mobile devices provides distinct designs and features targeted at
specified style and music driven consumer segments. This category is grouped under
the Xpress subcategory, which focuses on the mobile music experience and
consumer multimedia.
The entry category devices have voice capability, basic messaging and calendar
features, as well as, color displays, radios, basic cameras and Bluetooth functionality.
In 2008, the company shipped eight mobile devices with functions and features
specially designed for consumers in emerging markets including the Nokia 1202,
Nokia 1209, Nokia 1680 classic and Nokia 2600 classic in Connect, Nokia 2680 slide,
and Nokia 5000, Nokia 7070 Prism and Nokia 7100 Supernova in Live.
The services unit offers functionalities that improve the mobile device user
experience. The unit is organized into five subunits: music, maps/social location,
media, messaging and games. The subunits are supported by three horizontal teams:
people and places, service experience, and service platforms.
The people and places team builds and develops links between five core services,
and act as the primary interface between services and NAVTEQ. The service
experience team develops ways to improve the experience people have when using
the company's services. The service platforms team is engaged in developing the
infrastructure upon which the company deploys its services.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 20
In 2008, the music subunit launched Comes With Music service, an offer where,
following the purchase of a Nokia Comes With Music edition device, users can
download freely from a catalogue for a predefined period of time. The maps subunit
launched Nokia Maps 2.0 in 150 countries and 15 million points of interest and
featuring both drive and walk navigation.
The media subunit continued to develop media sharing capabilities, including
application and content sharing service Mosh, Widsets and Download! as well as
preload offerings. In February 2009, the company launched Ovi Store, an one stop
shop that offers consumers relevant, targeted media through their social connections
and their physical location information.
The messaging subunit made a number of announcements in the area of messaging.
It announced the acquisition of OZ Communications, a supplier of email, instant and
social messaging applications to operators in North America and other markets.
It also renewed its business mobility strategy, including the shift of resources from its
Intellisync email service to focus on developing consumer messaging solutions
including push email with an 'always on' capability and announced Nokia Messaging,
a service which gives consumers access to email and instant messaging accounts
from Yahoo! Mail and Yahoo! Messenger, Windows Live Hotmail, Gmail and Google
Talk, and AOL Mail as well as email solutions from internet service providers on the
majority of Nokia devices.
The games subunit launched and expanded the NGage games service with several
titles of interactive, multiplayer games from publishers including Capcom, EA Mobile,
Gameloft, Glu Mobile and Nokia Games Publishing.
Ovi, the company's internet services brand introduced in 2007 forms an important
part of its services strategy. The company integrated its individual services under the
Ovi brand and aims to simplify the user experience of Nokia services and differentiate
itself in the consumer internet services market. The Ovi services and applications are
accessible online at Ovi.com, on a PC using Nokia Ovi Suite, and through various
Nokia mobile device applications.
The markets unit is responsible for the management of the segment's supply chains,
sales channels, brand and marketing activities.
NAVTEQ segment was added through the acquisition of NAVTEQ Corporation, a
provider of digital map information and related location based content and services
for automotive navigation systems, mobile navigation devices, internet based
mapping applications, and government and business solutions.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 21
In 2008, NAVTEQ announced an industry strategy for map enhanced ADAS
(advanced driver assistance systems) using the MapEnhanced Positioning Engine
(MPE). It also started providing both NAVTEQ Traffic RDS delivery service and
NAVTEQ interactive advertising services for multiple Garmin devices (the nuvi 755T
and 775T and nuvi 2x5 family).
NAVTEQ along with Garmin introduced an advertising supported, real time traffic
service to market in North America. NAVTEQ also expanded its portfolio of dynamic
content, or real time data, to include flight status and fuel prices, leveraging dynamic
distribution capabilities from traffic and camera alerts.
NAVTEQ's map database enables its customers to offer dynamic navigation, route
planning, location based services and other geographic information based products
and services to consumer and commercial users. NAVTEQ provides its database to
mobile device and handset manufacturers, automobile manufacturers and dealers,
navigation systems manufacturers, software developers, internet portals, parcel and
overnight delivery services companies and governmental and quasigovernment
entities, among others.
Dynamic navigation offers real time, detailed turn by turn route guidance which can
be provided to end users through vehicle navigation systems, as well as through GPS
enabled handheld navigation devices, and other mobile devices. Route planning
consists of driving directions, route optimization and map display through services
provided by internet portals and through computer software for personal and
commercial use.
The location based services include location specific information services, that
provide information about people and places that is customized to the immediate
proximity of the specific user.
Current applications using NAVTEQ's map database include points of interest
locators, mobile directory assistance services, emergency response systems and
vehicle based telematics services.
The geographic information systems render geographic representations of
information and assets for management analysis and decision making. The examples
of these applications include infrastructure cataloging and tracking for government
agencies and utility companies, asset tracking and fleet management for commercial
logistics companies and demographic analysis.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 22
In addition, NAVTEQ has a traffic and logistics data collection network in which it
processes traffic incident and event information, along with comprehensive traffic flow
data collected through its network of roadside sensors, in order to provide detailed
traffic information to radio and television stations, in vehicle and mobile navigation
systems, Internet sites and mobile device users. In January 2009, NAVTEQ
expanded its traffic offering in Europe with the acquisition of TTraffic, a provider of
traffic services in Germany.
NAVTEQ's map database offers geographic coverage, including data at various
levels of detail for 74 countries on six continents, covering more than 15 million miles
of roadway. Unlike basic road maps, NAVTEQ's map database can have over 260
unique attributes for a particular road segment. The most detailed coverage includes
extensive road, route and related travel information, including attributes collected by
road segment that are essential for routing and navigation, such as road
classifications, details regarding ramps, road barriers, sign information, street names
and addresses and traffic rules and regulations.
In addition, the database includes over 30 million points of interest, such as airports,
hotels, restaurants, retailers, civic offices and cultural sites.
Nokia Siemens Networks (NSN) is a joint venture company established by Nokia and
Siemens, which started operations in 2007. NSN comprises Nokia's previous
networks business and Siemens' carrier related operations for fixed and mobile
networks. NSN is owned approximately equally by Nokia and Siemens and is
consolidated by Nokia. NSN has an alliance with Nokia's mobile device business with
respect to product and service offerings as well as customer interface.
NSN also includes certain intellectual property contributions owned by Nokia and
Siemens. Nokia Siemens Networks is headquartered in Espoo, Finland.
NSN provides wireless and fixed network infrastructure, communications, networks
service platforms, and professional services to operators and service providers. NSN
has a broad product and services portfolio that addresses the converging mobile and
fixed infrastructure markets.
NSN focuses mainly on the GSM family of radio technologies including GSM, EDGE
and WCDMA/HSPA networks; core networks with increasing IP and multi-access
capabilities; fixed broadband access, transport, operations and billing support
systems; and professional services such as managed services and consulting. NSN
also offers mobile WiMAX (worldwide interoperability for microwave access)
solutions.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 23
NSN operates through five business units: radio access; converged core; broadband
connectivity solutions; operations and business software; and services. Radio access
business unit develops GSM, EDGE and 3G/WCDMA/HSPA (highs peed packet
access) radio access networks and cellular transmission for operators and network
providers. It also develops new technologies such as IHSPA (internet HSPA), LTE
(long term evolution) and mobile WiMAX. The main products offered by radio access
are base stations, base station controllers and cellular transmission equipments.
Converged core business unit develops core network solutions for mobile and fixed
network operators. Its main products comprise switches, and different kinds of
network servers, subscriber databases and media gateways.
The broadband connectivity solutions business unit offers underlying infrastructure for
fixed and mobile networks. The business unit was formed by merging previous the
broadband access and IP transport business units in January 2009. The unit provides
the fundamental elements for highs peed transmission via optical and microwave
networks, including packet oriented technologies such as Ethernet and traditional
protocols such as TDM.
It also provides a portfolio for the wire line connectivity area such as digital subscriber
line access multiplexers, and narrowband/multiservice equipment. Its solutions
enable networks to offer triple-play services such as high speed internet, VoIP (voice
over internet protocol) and IPTV.
The operations and business software unit provides network and service
management software, and charging and billing software.
The services business unit offers a range of operation services, from consultancy to
outsourced operations; systems integration to hosting; and from network designing to
network implementation and turnkey solutions. The business unit is capable of
integrate software from virtually all vendors.
Additionally, in December 2008, Nokia acquired Symbian Limited, a developer and
licenser of Symbian open source operating system for mobile devices. Subsequently,
the company established the Symbian Foundation, which includes Symbian OS and
S60 software for the purpose of creating a unified mobile software platform with a
common user interface framework.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 24
Key Metrics
Nokia Corporation generated revenues of $74,201.4 million in the financial year
ended December 2008, a decrease of 0.7% compared to the previous year. The
company's net income totaled $5,835.4 million in fiscal 2008, a decrease of 44.6%
compared with 2007.
The devices and services segment generated revenues of $55,171.9 million in the
fiscal year ended December 2008. The total number of units sold by the devices and
services segment totaled 468.4 million. 114.9 million units were sold in Europe alone.
81 million units and 134 million units were sold in the Middle East and Africa and Asia
Pacific respectively.
Table 6: Key Financials: Nokia Corporation

Metric 2004 2005 2006 2007 2008
Revenues 42,977.1 50,030.0 60,170.3 74,710.6 74,201.4
Net Income 4,670.7 5,291.1 6,300.8 10,542.7 5,835.4
Profit Margin 10.9% 10.6% 10.5% 14.1% 7.9%
Total Assets 33,395.8 32,852.9 33,094.3 54,958.2 57,918.4
Total Liabilities 28,545.1 27,730.1 22,806.2 29,588.4 33,760.1
Employees 53,511 56,896 65,324 112,262 121,723

All in $ millions, except for employee numbers and margins

Source: Company Filings D A T A M O N I T O R

Figure 4: Revenues & Profitability: Nokia Corporation

0.0
10,000.0
20,000.0
30,000.0
40,000.0
50,000.0
60,000.0
70,000.0
80,000.0
2004 2005 2006 2007 2008
Year
U
S
$

M
i
l
l
i
o
n
s
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
P
r
o
f
i
t

M
a
r
g
i
n

(
%
)
Revenues Net Income Profit Margin

Source: Company Filings D A T A M O N I T O R

LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 25
5.3 LG Group
Table 7: Key Facts: LG Group

Address: LG Twin Towers, 20 Yoido dong, Youngdungpo gu
Seoul 150 721, KOR
Telephone: 82 23 773 1114
Fax: 82 23 773 2200
Website: www.lg.co.kr
Financial Year-End: December

Source: Company Website D A T A M O N I T O R

LG Group is a large industrial group consisting of 50 affiliated companies with some
300 offices and subsidiaries globally operating in three main business fields:
chemicals, electronics, and telecommunications and services. The group primarily
operates in the China, Asia, North America and Europe. It is headquartered in Seoul,
South Korea and employs about 160,000 people.
The electronics division includes LG Electronics (LG Innotek, and LG Philips LCD, LG
Micron, Hiplaza, Hi Logistics), Siltron and Lusem.
These companies produce a range of electronics products including digital
appliances, digital display products, and telecommunications products, digital
component, semiconductors, color picture tubes, and TFT-LCD modules.
LG Electronics offers consumer electronics, home appliances and mobile
communications products. The company comprises of four business units: mobile
communications, digital appliance, digital display and digital media. It produces
CDMA handsets, air conditioners, optical storage products, DVD players and home
theater systems.
Siltron a silicon wafer industry in Korea produces wafers, a basic material for
semiconductor substrates.
LUSEM, a joint venture of LG Corporation and OKI of Japan, produces drive ICs,
which are the key components of flat panel displays.
The chemicals division includes companies: LG Chem, LG Household and
Healthcare, LG Life Sciences and LG MMA. These produce petrochemicals, plastics,
household and healthcare products, pharmaceuticals, materials for electronics and
IT, polycarbonates and automotive products.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 26
LG Chem, is a vertically integrated chemical company that manufactures a wide
range of products from petrochemical goods to high value added plastics and high
performance industrial materials. It also produces materials for electronics and
information technology such as rechargeable batteries and display materials.
LG Household and Health Care produces and sells toothpaste, synthetic detergents,
and other household supplies and products.
LG Life Sciences produces an array of pharmaceuticals and genetic engineering
products including animal drugs.
LG MMA, a joint venture of LG Chemical, Sumitomo Chemical and Nippon Shokubai
Company of Japan, produces methylmethacrylate (MMA), used as an industrial
material to supply to key domestic companies.
The telecommunications and services division includes LG TeleCom, LG DACOM,
LG CNS, LG N-Sys, SERVEONE and LG Sports. The companies in this division
provide a range of services including consulting, network integration, business
process outsourcing, computing systems, banking systems, telephone services and
internet services.
LG Telecom provides WAP wireless Internet (ez-i) services. It offers mobile services
and wireless Internet services.
LG DACOM an information communications company offers domestic and overseas
line services designed for constructing communications networks for businesses. It
provides a variety of telephone services, including Chollian Internet service, 002
international telephone service, long-distance call telephone services, and the
exclusive Internet service Boranet.
LG CNS offers optimum solutions-based integrated technologies backed by a large-
scale information communications network (LG NET), as well as a range of hardware
and software.
SERVEONE offers purchasing services (MRO business) for businesses, building
management and remodeling services (FM business), and communications services
such as in-house communication and VOIP services.
LG sports, manages and operates professional baseball clubs.
LEADING COMPANIES



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 27
Key Metrics
LG Group generated revenues of $81.8 billion in the financial year ended December
2008, an increase of 18.3% compared to the previous year. The company's net
income totaled $2.7 billion in fiscal 2008, a decrease of 18.4% compared with 2007.
LG Electronics generated revenues of $437.8 million for the LG Group, a decrease of
0.6% compared to the previous fiscal year.
Table 8: Key Financials: LG Group

Metric 2004 2005 2006 2007 2008
Revenues 6,365.2 56,260.6 59,520.8 69,174.7 81,809.6
Net Income 593.5 545.6 416.9 3,293.5 2,686.4
Profit Margin 9.3% 1.0% 0.7% 4.8% 3.3%
Total Assets 42,043.8 45,663.6 45,445.8 49,037.4 58,741.4
Total Liabilities 28,734.2 29,139.4 28,624.6 29,153.6 35,406.6

All in $ millions, except for employee numbers and margins

Source: Company Filings D A T A M O N I T O R

Figure 5: Revenues & Profitability: LG Group

0.0
10,000.0
20,000.0
30,000.0
40,000.0
50,000.0
60,000.0
70,000.0
80,000.0
90,000.0
2004 2005 2006 2007 2008
Year
U
S
$

M
i
l
l
i
o
n
s
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
P
r
o
f
i
t

M
a
r
g
i
n

(
%
)
Revenues Net Income Profit Margin

Source: Company Filings D A T A M O N I T O R
MARKET FORECASTS



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 28
CHAPTER 6 MARKET FORECASTS
6.1 Market Value Forecast
In 2013, the Canadian mobile phones market is forecast to have a value of $1,491
million, an increase of 26% since 2008.
The compound annual growth rate of the market in the period 2008-2013 is predicted
to be 4.7%.
Table 9: Canada Mobile Phones Market Value Forecast: $ million, 2008-
2013

Year $ million C$ million % Growth

2008 1,183.2 1,262.1 17.90%
2009 1,177.2 1,255.7 -0.50%
2010 1,249.7 1,333.1 6.20%
2011 1,318.8 1,406.7 5.50%
2012 1,406.3 1,500.1 6.60%
2013 1,491.0 1,590.4 6.00%

CAGR, 2008-2013: 4.7%

Source: Datamonitor D A T A M O N I T O R

Figure 6: Canada Mobile Phones Market Value Forecast: $ million, 2008-
2013

Source: Datamonitor D A T A M O N I T O R

0
200
400
600
800
1,000
1,200
1,400
1,600
2008 2009 2010 2011 2012 2013
$

m
i
l
l
i
o
n
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
%

G
r
o
w
t
h
$ million % Growth
MARKET FORECASTS



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 29
6.2 Market Volume Forecast
In 2013, the Canadian mobile phones market is forecast to have a volume of 16
million units, an increase of 13.4% since 2008.
The compound annual growth rate of the market volume in the period 2008-2013 is
predicted to be 2.5%.
Table 10: Canada Mobile Phones Market Volume Forecast: Units million,
2008-2013

Year Units million % Growth

2008 13.7 8.60%
2009 13.3 -2.90%
2010 14.1 5.70%
2011 14.6 4.20%
2012 15.2 3.80%
2013 15.5 2.10%

CAGR, 2008-2013: 2.5%

Source: Datamonitor D A T A M O N I T O R

Figure 7: Canada Mobile Phones Market Volume Forecast: Units million,
2008-2013

Source: Datamonitor D A T A M O N I T O R

12.0
12.5
13.0
13.5
14.0
14.5
15.0
15.5
16.0
2008 2009 2010 2011 2012 2013
U
n
i
t
s

m
i
l
l
i
o
n
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
%

G
r
o
w
t
h
Units million % Growth
MACROECONOMIC INDICATORS



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 30
CHAPTER 7 MACROECONOMIC INDICATORS
Table 11: Canada Size of Population (million) , 2004-2008

Year Population (million) % Growth

2004 32.1
2005 32.4 0.80%
2006 32.7 0.80%
2007 32.9 0.90%
2008 33.2 0.80%


Source: Datamonitor D A T A M O N I T O R

Table 12: Canada GDP (Current Prices, $ billion), 2004-2008

Year
Current Prices, $
billion % Growth

2004 1206.3
2005 1282.9 6.30%
2006 1349.1 5.20%
2007 1436.9 6.50%
2008 1465.5 2.00%


Source: Datamonitor D A T A M O N I T O R

Table 13: Canada Inflation, 2004-2008

Year Inflation Rate (%) % Growth

2004 1.9
2005 2.2 15.80%
2006 2.0 -9.10%
2007 2.1 5.00%
2008 2.6 23.80%


Source: Datamonitor D A T A M O N I T O R

MACROECONOMIC INDICATORS



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 31
Table 14: Canada Exchange Rate, 2004-2008

Year
Exchange Rate
($/C$)

2004 0.76834
2005 0.82527
2006 0.88136
2007 0.93075
2008 0.93748


Source: Datamonitor D A T A M O N I T O R

APPENDIX



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 32
CHAPTER 8 APPENDIX
8.1 Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all
aggregated, analyzed, cross-checked and presented in a consistent and accessible
style.
Review of in-house databases – Created using 250,000+ industry interviews and
consumer surveys and supported by analysis from industry experts using highly
complex modeling & forecasting tools, Datamonitor’s in-house databases provide the
foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news,
analyst commentary, company profiles and macroeconomic & demographic
information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to
country. The parameters of each definition are carefully reviewed at the start of the
research process to ensure they match the requirements of both the market and our
clients
Extensive secondary research activities ensure we are always fully up-to-date with
the latest industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources,
including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that
allow quantitative and qualitative data to be combined with related macroeconomic
and demographic drivers to create market models and forecasts, which can then be
refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused,
accurate and up-to-date
APPENDIX



Canada - Mobile Phones
© Datamonitor (Published December 2009) Page 33
8.2 Industry Associations
CRTC
Ottawa, Ontario Canada, K1A 0N2
T: 001 877 249 2782
F: 001 819 994 0218
http://www.crtc.gc.ca
CTIA - The Wireless Association
1400 16th Street, NW, Suite 600, Washington, DC 20036, US
T: 001 202 785 0081
F: 001 202 785 0721
http://www.ctia.org
8.3 Related Datamonitor Research
Datamonitor Industry Profiles
Global Mobile Phones
Mobile Phones in Europe
Mobile Phones in Asia-Pacific
Mobile Phones in France
Mobile Phones in Germany
Mobile Phones in the United Kingdom
Mobile Phones in Japan
Mobile Phones in the United States
Mobile Phones in China
Mobile Phones in Italy
Mobile Phones in Belgium

Copyright of Mobile Phones Industry Profile: Canada is the property of Datamonitor Plc and its content may
not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written
permission. However, users may print, download, or email articles for individual use.

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close