Telecommunications Industry Analysis

SMARTPHONES OVERVIEW 

Telecommunications industry is one of the fastest growing industry in the world today. It plays a crucial role in the evolution of mobile communications and the information society. Among all of the sectors of telecommunication industry, smartphone is the one which relates most closely to people’s everyday life. The overview of the smartphone industry covers：

• description of telecommunication industry,
• definition of telecommunication industry,
• size of the smartphone industry,
• competitors in smartphone industry,
•  lifecycle of smartphone industry，and
•  factors driven the smartphone industry.

The 6 parts will provide a snapchat of the telecommunication industry and smartphone sector.

Description of Telecommunication Industry

Telecommunications industry operates and maintains switching and transmission facilities to provide direct communications through wireless radio transmission. Wireless services include cellular voice telephony services, messaging services, broadband data services and mobile backhaul services carriers may also retail mobile handsets and related equipment to consumers. (IBISWorld, 2017)

 In the 1990s and early this century, traditional telephone calls used to be the major revenue resource of telecommunication industry. However, as the development of network technology, telecommunication today is less about voice and increasingly about text and images. High-speed internet access for computer-based data applications such as broadband information services and interactive entertainment largely boost the telecommunication market. Market research analysts at Technavio predict that the smartphone market, one of the most representative market sectors in telecommunication industry, will grow steadily at a compound annual growth rate of more than 6 percent by 2021. (Businesswire, 2017)

Definition of Telecommunication Industry

The primary activities of telecommunication industry include providing voice telephony services, mobile messaging services, mobile data services, and mobile backhaul services and retailing handsets and associated equipment. According to figure1, operators generate 55 percent revenues of the whole industry.  Retail and distribution, smartphone included, account for 10 percent of the revenues.

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Source: Global    telecommunications study: navigating the road to 2020 (EY, 2015)

Size of Smartphone Industry

Annual revenue can provide a whole picture of the smartphone industry, and the growth of annual revenue and employment can demonstrate the development potential of the industry.

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Source: Statista (GRK, 2017)

The total revenue of the industry was $ 470.3 billion in 2016

Describe the size of your industry using the following indicators: annual revenue (2016 totals), annual revenue growth (trend over five years), employment, and annual growth in employment

Competitors in Smartphones Industry