2023-12-15 16:43:02
After prosperous years, investment spending by telecom operators around the world is expected to decline significantly. To conquer the smartphone market in Europe, the high-end segment is seen as the right entry point.
Harsh outlook for equipment manufacturers
According to some professionals, investment spending (capex) in network infrastructure by telecom operators around the world is expected to fall by 7% between 2022 and 2025. The fall in the United States might even be 25 to 30% in three years. . These negative developments are not offset by the development of activity in emerging countries. In this context, the world number three Nokia might announce additional cost cuts, while it plans to cut 9,000 to 14,000 jobs by 2026, following the plunge in its profits in the third quarter. The world number two, the Swedish Ericsson, is reducing its workforce by 8,500 employees worldwide. But the situation is not going to improve for Nokia because Ericsson won the largest contract in its history ($14 billion) with the American operator AT&T, which represented 5% to 8% of Nokia’s turnover. Nokia on the mobile part.
The strategic niche of foldable smartphones
Chinese smartphone manufacturer Honor, now independent from Huawei, recently launched its latest foldable model, already available in China. Leader in its national market, Honor wants to make Europe its second market. It is counting on foldable smartphones to achieve this, while specialists predict that this market segment should represent 39% of the premium market in 2027. Honor, which believes that these smartphones should become market standards, wants to take its place from Samsung of world leader. In Western Europe, Honor entered the global top 5 in July 2023, becoming the fourth player in the market behind Samsung, Apple, and its compatriot Xiaomi, according to GfK.
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