Boom continues in Europe

The Western European mobile phone market maintained double-digit growth in the opening quarter of 2006, according to IDC. Shipments increased by 11% year on year to 40.7m units. But despite healthy unit volumes, vendor profit margins were hit by intense competition,

ASP declines and sustained scrutiny of handset portfolios and costs by mobile operators. That portfolio rationalisation meant the top three vendors accounted for almost 70% of all traditional mobile phones shipped, compared to 62% in Q1 2005.

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