The Asia/Pacific (excluding Japan) or APEJ market is expected to surpass 400 million units in 2008, representing a 10% increase from 2007. By 2012, shipments will reach almost 500 million units. Despite the potential for growth, the market is entering a period of uncertainty in the short term, as poor economic conditions, ailing giants and expanding Chinese phone makers create both opportunities and threats in the environment. Over a longer time frame, more questions will arise as the emerging markets of the People's Republic of China (PRC) and India begin to mature.
"Although first-time users still drive a significant volume of growth in APEJ today, the balance will shift toward replacement users in the coming years. This means that there will be increased opportunities when targeting first-time upgraders who are looking for more feature-filled phones - but this is already a crowded segment eyed by the likes of LG, Samsung, and Sony Ericsson," says Aloysius Choong, research manager, Personal Systems Group, IDC Asia/Pacific.