mobile phone industry italy nov. 2010

8/3/2019 Mobile Phone Industry Italy Nov. 2010

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Italy - Mobile Phones 0171 - 0152 - 2009

Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

INDUSTRY PROFILE

Mobile Phones in

Italy

Reference Code: 0171-0152

Publication Date: October 2010


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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The Italian mobile phones market shrank by 4.4% in 2009 to reach a value of $4,105.5 million.

Market value forecast

In 2014, the Italian mobile phones market is forecast to have a value of $4,678.7 million, an increase of

14% since 2009.

Market volume

The Italian mobile phones market grew by 11% in 2009 to reach a volume of 34.8 million units.

Market volume forecast

In 2014, the Italian mobile phones market is forecast to have a volume of 36.3 million units, an increase of

4.4% since 2009.

Market segmentation II

Italy accounts for 16% of the European mobile phones market value.

Market rivalry

Rivalry in the Italian mobile phone market is moderate with large multi national corporations dominating

the market.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 6

Market definition 6

Research highlights 7

Market analysis 8

MARKET VALUE 9

MARKET VOLUME 10

MARKET SEGMENTATION II 11

COMPETITIVE LANDSCAPE 12

LEADING COMPANIES 15

Nokia Corporation 15

LG Electronics Mobile Communications Company 21

Motorola Inc. 26

Samsung Electronics Co., Ltd. 31

MARKET FORECASTS 36

Market value forecast 36

Market volume forecast 37

MACROECONOMIC INDICATORS 38

APPENDIX 40

Methodology 40

Industry associations 41

Related Datamonitor research 41

Disclaimer 42

ABOUT DATAMONITOR 43

Premium Reports 43

Summary Reports 43

Datamonitor consulting 43


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CONTENTS



LIST OF TABLES

Table 1: Italy mobile phones market value: $ million, 200509 9

Table 2: Italy mobile phones market volume: million units, 200509 10

Table 3: Italy mobile phones market segmentation II: % share, by value, 2009 11

Table 4: Nokia Corporation: key facts 15

Table 5: Nokia Corporation: key financials ($) 18

Table 6: Nokia Corporation: key financials () 18

Table 7: Nokia Corporation: key financial ratios 19

Table 8: LG Electronics Mobile Communications Company: key facts 21

Table 9: LG Electronics Mobile Communications Company: key financials ($) 23

Table 10:

LG Electronics Mobile Communications Company: key financials (SKW) 23

Table 11: LG Electronics Mobile Communications Company: key financial ratios 24

Table 12: Motorola Inc.: key facts 26

Table 13: Motorola Inc.: key financials ($) 29

Table 14: Motorola Inc.: key financial ratios 29

Table 15: Samsung Electronics Co., Ltd. : key facts 31

Table 16: Samsung Electronics Co., Ltd. : key financials ($) 33

Table 17: Samsung Electronics Co., Ltd. : key financials (SKW) 33

Table 18:

Samsung Electronics Co., Ltd. : key financial ratios 34

Table 19: Italy mobile phones market value forecast: $ million, 200914 36

Table 20: Italy mobile phones market volume forecast: million units, 200914 37

Table 21: Italy size of population (million), 200509 38

Table 22: Italy gdp (constant 2000 prices, $ billion), 200509 38

Table 23: Italy gdp (current prices, $ billion), 200509 38

Table 24: Italy inflation, 200509 39

Table 25: Italy consumer price index (absolute), 200509 39

Table 26: Italy exchange rate, 200509 39


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CONTENTS



LIST OF FIGURES

Figure 1: Italy mobile phones market value: $ million, 200509 9

Figure 2: Italy mobile phones market volume: million units, 200509 10

Figure 3: Italy mobile phones market segmentation II: % share, by value, 2009 11

Figure 4: Nokia Corporation: revenues & profitability 19

Figure 5: Nokia Corporation: assets & liabilities 20

Figure 6: LG Electronics Mobile Communications Company: revenues & profitability 24

Figure 7: LG Electronics Mobile Communications Company: assets & liabilities 25

Figure 8: Motorola Inc.: revenues & profitability 30

Figure 9: Motorola Inc.: assets & liabilities 30

Figure 10:

Samsung Electronics Co., Ltd. : revenues & profitability 34

Figure 11: Samsung Electronics Co., Ltd. : assets & liabilities 35

Figure 12: Italy mobile phones market value forecast: $ million, 200914 36

Figure 13: Italy mobile phones market volume forecast: million units, 200914 37


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MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The mobile phone market consists of all analog and digital handsets used for mobile telephony. Marketvolumes 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 2009 annual average exchange

rates.

For the purposes of this report, Europe consists of Western Europe and Eastern Europe.

Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain,

Sweden, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.


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MARKET OVERVIEW



Research highlights

The Italian mobile phones market had total revenue of $4.1 billion in 2009, representing a compound

annual growth rate (CAGR) of 0.4% for the period spanning 2005-2009.

Market consumption volumes increased with a CAGR of 6.8% between 2005 and 2009, to reach a total of

34.8 million units in 2009.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 2.6% for the five-

year period 2009-2014, which is expected to drive the market to a value of $4.7 billion by the end of 2014.


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MARKET OVERVIEW



Market analysis

The Italian mobile phones market was experiencing slow growth until 2009 when it declined as recession

hit. It is however, expected to rebound and post steady growth through to the end of the forecast period.

The Italian mobile phones market had total revenue of $4.1 billion in 2009, representing a compound

annual growth rate (CAGR) of 0.4% for the period spanning 2005-2009. In comparison, the French and

German markets grew with CAGRs of 6.2% and 0.1% respectively, over the same period, to reach

respective values of $4.4 billion and $5.1 billion in 2009.

Market consumption volumes increased with a CAGR of 6.8% between 2005 and 2009, to reach a total of

34.8 million units in 2009. The market's volume is expected to rise to 36.3 million units by the end of

2014, representing a CAGR of 0.9% for the 2009-2014 period.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 2.6% for the five-

year period 2009-2014, which is expected to drive the market to a value of $4.7 billion by the end of 2014.

Comparatively, the French and German markets will grow with CAGRs of 6% and 4.4% respectively, overthe same period, to reach respective values of $5.8 billion and $6.4 billion in 2014.


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MARKET VALUE



MARKET VALUE

The Italian mobile phones market shrank by 4.4% in 2009 to reach a value of $4,105.5 million.

The compound annual growth rate of the market in the period 200509 was 0.4%.

Table 1: Italy mobile phones market value: $ million, 200509

Year $ million million % Growth

2005 4,038.5 2,904.3

2006 4,182.7 3,008.0 3.6%

2007 4,258.9 3,062.8 1.8%

2008 4,294.4 3,088.4 0.8%

2009 4,105.5 2,952.5 (4.4%)

CAGR: 200509 0.4%

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

Figure 1: Italy mobile phones market value: $ million, 200509



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MARKET VOLUME



MARKET VOLUME

The Italian mobile phones market grew by 11% in 2009 to reach a volume of 34.8 million units.

The compound annual growth rate of the market in the period 200509 was 6.8%.

Table 2: Italy mobile phones market volume: million units, 200509

Year million units % Growth

2005 26.7

2006 29.0 8.6%

2007 30.3 4.2%

2008 31.3 3.6%

2009 34.8 11.0%

CAGR: 200509 6.8%


Figure 2: Italy mobile phones market volume: million units, 200509



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MARKET SEGMENTATION II



MARKET SEGMENTATION II

Italy accounts for 16% of the European mobile phones market value.

Germany accounts for a further 19.9% of the European market.

Table 3: Italy mobile phones market segmentation II: % share, by value, 2009

Category % Share

Germany 19.9%

France 17.0%

Italy 16.0%

United Kingdom 11.8%

Rest of Europe 35.4%

Total 100%


Figure 3: Italy mobile phones market segmentation II: % share, by value, 2009



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COMPETITIVE LANDSCAPE




The mobile phones market will be analyzed taking manufacturers of electronic components as players.

The key buyers will be taken as companies operating in a diverse range of equipment manufacturing such

as healthcare, automotive and consumer electronics, and manufacturers of raw materials (steel, copper,

aluminum, mineral oil and various plastics) and fabricated products as the key suppliers.

Rivalry in the Italian mobile phone market is moderate with large multi national corporations dominating

the market.

The mobile phone market will be analyzed taking handset manufacturers as market players. Buyers in the

market include both network operators and independent retailers. Suppliers provide software and parts for

manufacture of mobile phones. Network operator's diversification into handset production has put

manufacturers under enhanced pressure.

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 telephone manufacture. This includes highly specialized software and electronic components.

Other suppliers are those providing advertising and marketing services. 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 fund 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. The trend for smartphones has strengthened supplier power as operating

systems such as Windows, RIM, Android, Apple and Symbian is now an essential component for

Smartphone manufacturers.


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As entry barriers fall in markets throughout the world it is likely that profitability is likely to flow away from

handset manufacturers to manufacturers of key performance enhancing components and modules (both

hardware and software). Overall supplier power is moderate.

The threat of new entrants in this market is weak. It would be possible to enter as a company alreadyinvolved 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 Apples iPhone, Research in Motions

Blackberry, HTCs Hero, and the Palm Pre all examples of newcomers successfully entering the market in

recent years. Smartphones 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 completelynew 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.

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. Additionally, weak growth rates may negatively affect 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 twoproducts 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 Motorola, Nokia and

Samsung, 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 with Italy recording a market pentration of 152% and insuch 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.


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Companies like Samsung 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 strong.


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LEADING COMPANIES



LEADING COMPANIES

Nokia Corporation

Table 4: Nokia Corporation: key facts

Head office: Keilalahdentie 2-4, Espoo 02150, FIN

Telephone: 358 7180 08000

Fax: 358 7180 34003

Website: www.nokia.com

Financial year-end: December

Ticker: NOK, NOA3, NOK1V

Stock exchange: New York, Frankfurt, Helsinki

Source: company website D A T A M O N I T O R

Nokia is one of the leading manufacturers of mobile devices and network equipments. The company

offers a wide range of mobile devices for music, navigation, video, television, imaging, games, and

business mobility. It also provides equipment and services for communications networks through Nokia

Siemens Networks, a joint venture between Nokia and Siemens formed by combining Nokia's carrier

networks business, and Siemens's carrier related operations for fixed and mobile networks. The company

also offers digital map information and related location based content and services through its subsidiary,

NAVTEQ, and open source operating system for mobile devices, Symbian, though subsidiary Symbian

Limited. The company operates in more than 150 countries.

The company manages its operations across three operating segments: devices and services, Nokia

Siemens Networks, and NAVTEQ.

The devices and services segment develops and manages the company's portfolio of mobile devices as

well as designs and develops services, including applications and content. The segment also manages

the company's supply chains, sales channels, brand and marketing activities for mobile devices and

services and their combinations, and explores corporate strategic and future growth opportunities for

Nokia. The company's portfolio of mobile devices and services encompass across three categories,

including mobile phones, smartphones and mobile computers.


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LEADING COMPANIES



The mobile phones sub-unit includes the company's portfolio of mobile devices that are powered by the

Series 30 and Series 40 software platforms. The Series 30 software platform powers the cost-effective

voice and messaging phones, which have voice capability, basic messaging and calendar features, and,

increasingly, color displays, radios, basic cameras and Bluetooth functionality. It does not facilitate

application development by third parties. The Series 40 software platform powers the majority of the

company's mobile phone models and supports more functionalities and applications, such as internet

connectivity. It is open to third-party developers to build Java and Adobe Flash Lite applications and

content, which they can make available through Ovi Store, Nokia's shop for applications and content.

Applications and content for Series 40 based devices include games, video, wallpapers, ringtones and

social networking applications.

In addition, Nokia also offers a range of services that can be accessed with the Series 30 and Series 40

software platforms. Example of these services include Nokia Life Tools, which enables consumers to

access timely and relevant agricultural information, as well as education and entertainment services,

without requiring the use of GPRS or internet connectivity. For the users of Nokia Series 40 powered

mobile phones, the company also offers Ovi Mail, a free email service designed especially for users in

emerging markets with internet-enabled devices. During 2009, the company also introduced Nokia

Money, a new mobile financial service.

The company's smartphones category consists of its portfolio of mobile devices powered by Symbian, as

well as the services and accessories Nokia sells with them. Symbian supports an array of functionalities,

and provides opportunities for the development of sophisticated applications and content by third parties.

All of the Nokia's smartphones can access a range of Ovi services.

The mobile computers sub-unit addresses the market for high performance, high end compact computing

devices, as well as includes the services and accessories it sells with them. During 2009, the company

began shipments of the Nokia N900, based on Maemo 5, the latest version of the Linux-based Maemo

software platform. Following an agreement between Nokia and Intel in early 2010, Maemo is being

merged with Intel's Moblin software platform to form a single Linux-based and fully open source platform,

MeeGo, for a wide range of computing devices, including pocketable mobile computers, net books,

tablets, media-phones, connected TVs and in-vehicle infotainment systems.

Nokia Siemens Networks provides mobile and fixed network infrastructure, communications and networks

service platforms, as well as professional services, to operators and service providers. It consists of three

business units: business solutions; global services; and network systems.

The business solutions unit includes consulting and systems integration; operations and business

software, which provides network and service management software and charging and billing software;

and subscriber database management businesses.


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LEADING COMPANIES



Global services business offers operators a range of professional services and network implementation

and turnkey solutions. It consists of three businesses: managed services ranging from network planning

and optimization to network operations; care services ranging from software and hardware maintenance,

proactive and multivendor care to competence development services; and network implementation,

ranging from project management to turnkey implementations and energy efficient sites.

Network systems unit focuses on providing both fixed and mobile network infrastructure, including Nokia

Siemens Networks's Flexi base stations, core products, optical transport systems and broadband access

equipment. For wireless networks, the unit develops global system for mobile communication (GSM),

enhanced data rates for global evolution (EDGE) and wideband code division multiple access / high-

speed packet access (WCDMA/HSPA) radio access networks for operators and network providers. It also

develops new technologies such as internet-HSPA (I-HSPA) and long-term evolution (LTE) to support the

uptake of mobile data services and introduce flat architecture for wireless and mobile broadband

applications. The main products are base stations and base station controllers.

For fixed line networks, Network systems focuses on transport networks, which are the underlying

infrastructure for all fixed and mobile networks. It also provides the fundamental elements for high-speed

transmission via optical and microwave networks, including packet oriented technologies such as

Ethernet and traditional protocols such as time-division multiplexing (TDM). The business unit also

provides a portfolio for the wire line connectivity area such as digital subscriber line access multiplexers,

and narrowband/multiservice equipment. It also develops core network solutions, including switches and

different kinds of network servers and media gateways, for mobile and fixed network operators.

NAVTEQ provides 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. In January 2010, the company introduced a new version of Ovi Maps for its

smartphones which includes high-end navigation using NAVTEQ's digital map information and related

location based content. This new version of Ovi Maps includes high-end car and pedestrian navigation

features, such as turn-by-turn voice guidance for 74 countries, in 46 languages, and traffic information for

more than 10 countries, as well as detailed maps for more than 180 countries.


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LEADING COMPANIES



Key Metrics

The company recorded revenues of $56,989 million in the fiscal year ending December 2009, a decrease

of 19.2% compared to fiscal 2008. Its net income was $1,239 million in fiscal 2009, compared to a net

income of $5,545 million in the preceding year.

Table 5: Nokia Corporation: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 47,543.0 57,179.2 70,996.7 70,512.8 56,988.7

Net income (loss) 5,028.1 5,987.5 10,018.6 5,545.4 1,238.9

Total assets 31,219.8 31,449.2 52,226.2 55,039.2 49,694.1

Total liabilities 26,351.6 21,672.5 28,117.5 32,081.9 29,185.4

Employees 56,896 65,324 112,262 121,723 123,171

Source: company filings D A T A M O N I T O R

Table 6: Nokia Corporation: key financials ()

million 2005 2006 2007 2008 2009

Revenues 34,191.0 41,121.0 51,058.0 50,710.0 40,984.0

Net income (loss) 3,616.0 4,306.0 7,205.0 3,988.0 891.0

Total assets 22,452.0 22,617.0 37,559.0 39,582.0 35,738.0




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LEADING COMPANIES



Table 7: Nokia Corporation: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 10.6% 10.5% 14.1% 7.9% 2.2%Revenue growth 16.4% 20.3% 24.2% (0.7%) (19.2%)

Asset growth (1.6%) 0.7% 66.1% 5.4% (9.7%)

Liabilities growth (2.9%) (17.8%) 29.7% 14.1% (9.0%)

Debt/asset ratio 84.4% 68.9% 53.8% 58.3% 58.7%

Return on assets 16.0% 19.1% 23.9% 10.3% 2.4%

Revenue per employee $835,612 $875,317 $632,420 $579,289 $462,680

Profit per employee $88,373 $91,659 $89,243 $45,557 $10,059


Figure 4: Nokia Corporation: revenues & profitability



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LEADING COMPANIES



Figure 5: Nokia Corporation: assets & liabilities



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LEADING COMPANIES



LG Electronics Mobile Communications Company

Table 8: LG Electronics Mobile Communications Company: key facts

Head office: LG Twin Tower 20, Yeouido-dong, Yeongdeungpo-gu, Seoul 150721, KOR

Telephone: 82 2 3777 1114

Website: www.lge.com


Ticker: 66570

Stock exchange: Seoul


LGE is one of the global leaders in consumer electronics, home appliances and mobile communications.

Its production network is spread across North America, South and Central America, Middle East and

Africa, Asia, China, and Russia.

The company restructured its business portfolio in January 2009. It now comprises of five business

segments: home entertainment, mobile communications, home appliance, air conditioning, and business

solutions.

The home entertainment segment operates through a subsidiary Home Entertainment Company. This

segment offers wide range of products such as LCD TVs, Plasma TVs, Home audio, Home video, Optical

storage, Plasma panels, and Projectors.

The mobile communication segment operates through a subsidiary LG Electronics Mobile

Communications Company. It is the third-largest producer of mobile handsets in the world. In FY2008,

this segment sold more than 100 million handsets globally. In FY 2009 LG claimed to be the third largest

handset manufacturer and provider globally.

The home appliance segment operates through a subsidiary LG Home Appliance Company. This

segment's product offering includes washing machines, dish washers, refrigerators, vacuum cleaner,

cooking appliance, and built-in appliances.

The air conditioning segment operates through a subsidiary Air Conditioning Company. LGE reorganized

Air Conditioning Company in 2009 to broaden its business horizons to include the business-to-business

sector. The air conditioning segment provides heating, ventilation, and air conditioning solutions that are

optimized for both home and work environments.


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LEADING COMPANIES



LGE created the Business Solutions Company in 2009. The LGE Business Solutions Company is one of

the leading business-to-business infotainment companies, which is engaged in production and marketing

of wide range of LCD monitors, commercial displays, car infotainment and telematics, and digitally

enhanced security systems.


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LEADING COMPANIES



Key Metrics

The company recorded revenues of $56,916 million in the fiscal year ending December 2009, an increase

of 15.3% compared to fiscal 2008. Its net income was $2,177 million in fiscal 2009, compared to a net

income of $889 million in the preceding year.

Table 9: LG Electronics Mobile Communications Company: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 34,675.1 36,153.3 41,682.3 49,369.9 56,915.7

Net income (loss) 472.4 182.5 1,614.0 888.5 2,177.3

Total assets 25,841.9 25,996.1 26,982.0 33,057.9 34,918.2


Employees 72,104 82,679 80,283 84,445 82,136


Table 10: LG Electronics Mobile Communications Company: key financials (SKW)

SKW million 2005 2006 2007 2008 2009

Revenues 44,445,128.0

46,339,864.0 53,426,741.0

63,280,391.0

72,952,346.0

Net income (loss) 605,562.0 233,909.0 2,068,698.0 1,138,872.0 2,790,814.0

Total assets 33,123,183.0

33,320,738.0 34,584,427.0

42,372,298.0

44,756,799.0

Total liabilities 21,907,373.0

22,452,490.0 21,756,473.0

27,579,726.0

27,522,834.0



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LEADING COMPANIES



Table 11: LG Electronics Mobile Communications Company: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 1.4% 0.5% 3.9% 1.8% 3.8%Revenue growth 2.8% 4.3% 15.3% 18.4% 15.3%

Asset growth 10.7% 0.6% 3.8% 22.5% 5.6%

Liabilities growth 3.4% 2.5% (3.1%) 26.8% (0.2%)

Debt/asset ratio 66.1% 67.4% 62.9% 65.1% 61.5%

Return on assets 1.9% 0.7% 6.1% 3.0% 6.4%


Profit per employee $6,552 $2,207 $20,103 $10,522 $26,509


Figure 6: LG Electronics Mobile Communications Company: revenues & profitability



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LEADING COMPANIES



Figure 7: LG Electronics Mobile Communications Company: assets & liabilities



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LEADING COMPANIES



Motorola Inc.

Table 12: Motorola Inc.: key facts

Head office: 1303 East Algonquin Road, Schaumburg, Illinois 60196, USA

Telephone: 1 847 576 5000

Fax: 1 847 576 5372

Website: www.motorola.com


Ticker: MOT

Stock exchange: New York


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, set-top boxes and video distribution systems, analog and digital two-way radios, wireless and

wireline broadband network products, and end-to-end enterprise mobility products. It provides fixed and

mobile solutions for consumer, enterprise and governments markets. The company operates in the

Americas; Europe, Middle East and Africa; and Asia Pacific.

The company operates through three reportable business segments: home and networks mobility, mobile

devices, and enterprise mobility solutions.

The home and networks mobility segment designs, manufactures, sells, installs and services digital media

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 distribution systems, broadband access

infrastructure platforms, and associated data and voice customer premise equipment to cable television

and telecom service providers. The wireless access systems comprise cellular infrastructure systems and

wireless broadband systems, to wireless service providers.


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LEADING COMPANIES



In the home business, the segment provides end-to-end networks used for the delivery of video, data and

voice services over hybrid fiber coaxial (HFC) networks, digital subscriber line (DSL) networks and

passive optical networks (PON). The company's home business portfolio includes: MPEG video encoding

equipment for standard-definition and high-definition television (HDTV or HD); 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. Motorola provides a broad array of

digital entertainment devices supporting analog, digital and IP video delivery, including HD and digital

video recording (DVR) applications. The company also 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 and DSL networks and optical line and optical node terminals for PON networks.

In the networks business, the segment 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, iDEN and UMTS technologies. The segment also offers a portfolio of WiMAX

products and is in trials with customers to provide the company's LTE technology to enable next-

generation mobile IP broadband access.

The home and networks mobility segment's products are marketed primarily to cable television operators,

telecom operators, wireless service providers, television programmers and other communications

providers worldwide and are sold primarily by the company's internal sales force. The segment's

headquarters are located in Horsham, Pennsylvania. Its other major facilities are located in: Arlington

Heights, Illinois; San Diego, California; Taipei, Taiwan; Bangalore, India; Beijing, Hangzhou and Tianjin,

China; and Reynosa, Mexico.

The mobile devices segment designs, manufactures, sells and services wireless handsets, including

smartphones, with integrated software and accessory products, and licenses intellectual property. The

company's wireless subscriber products include wireless handsets and related software and accessory

products. Motorola also licenses its intellectual property. It markets its mobile devices segment products

globally to carriers and consumers through direct sales, distributors and retailers.

The company's mobile devices segment's headquarters are located in Libertyville, Illinois. Its other major

facilities are located in Beijing and Tianjin, China; Jaguariuna, Brazil; Seoul, South Korea; and Plantation,

Florida. A significant portion of the company's handsets are manufactured either completely or

substantially by a small number of electronics manufacturing suppliers (EMSs) and ODMs.


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LEADING COMPANIES



The enterprise mobility solutions segment designs, manufactures, sells, installs and services analog and

digital two-way radios, wireless LAN and security products, voice and data communications products and

systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions.

The segment sells these solutions to a range of customers, including government and public safety

agencies, as well as retail, energy and utilities, transportation, manufacturing, healthcare and other

commercial customers.

The company's enterprise mobility solutions segment provides advanced mission-critical and commercial

enterprise mobility networks, services, applications and devices. The segment offers a portfolio of

standard products and services that meet evolving public safety and security needs, including products

based on both terrestrial trunked radio (TETRA) and Association for Public Safety Communications

Officials (APCO 25) standards. The segment also provides products and systems for the advanced

exchange of information at the point of business activity. Motorola's products include two-way radio

systems and devices, mobile computing products, advanced data capture products including barcode

scanners and imagers, radio frequency identification (RFID) infrastructure, software management,

security tools and wireless infrastructure.

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. A portion of the segment's manufacturing is done by

a small number of non-affiliated electronics manufacturing suppliers and distribution and logistics services

providers.


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LEADING COMPANIES



Key Metrics

The company recorded revenues of $22,044 million in the fiscal year ending December 2009, a decrease

of 26.9% compared to fiscal 2008. Its net loss was $28 million in fiscal 2009, compared to a net loss of

$4,244 million in the preceding year.

Table 13: Motorola Inc.: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 35,310.0 42,847.0 36,622.0 30,146.0 22,044.0

Net income (loss) 4,578.0 3,661.0 (49.0) (4,244.0) (28.0)

Total assets 35,802.0 38,593.0 34,812.0 27,869.0 25,603.0


Employees 69,000 66,000 66,000 64,000 64,000


Table 14: Motorola Inc.: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 13.0% 8.5% (0.1%) (14.1%) (0.1%)

Revenue growth 19.0% 21.3% (14.5%) (17.7%) (26.9%)

Asset growth 15.8% 7.8% (9.8%) (19.9%) (8.1%)

Liabilities growth 8.7% 12.1% (9.7%) (5.2%) (14.4%)

Debt/asset ratio 53.4% 55.6% 55.6% 65.9% 61.4%

Return on assets 13.7% 9.8% (0.1%) (13.5%) (0.1%)


Profit per employee $66,348 $55,470 ($742) ($66,313) ($438)



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LEADING COMPANIES



Figure 8: Motorola Inc.: revenues & profitability


Figure 9: Motorola Inc.: assets & liabilities



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LEADING COMPANIES



Samsung Electronics Co., Ltd.

Table 15: Samsung Electronics Co., Ltd. : key facts

Head office: 250 2-ga, Taepyung-ro, Jung-gu, Seoul 100 742, KOR

Telephone: 82 201 229 4000

Fax: 82 201 229 4029

Website: www.samsung.com


Ticker: 5930

Stock exchange: Korea


Samsung Electronics provides consumer electronics, communication products, semiconductor products

and home appliances. The company, a part of the Samsung group, operates through a number of

subsidiaries. It manufactures and markets consumer electronic products such as televisions (TV) and

home appliances. The company also manufactures semiconductors, information technology products and

telecommunication infrastructure system.

*Samsung Electronics operates through four business segments: digital media, telecommunications,

semi-conductor and liquid crystal display (LCD).

The digital media business segment produces a wide range of products including digital TVs, monitors,

audio-visual devices, and printers. This segment also provides digital home appliances like refrigerators,

air conditioners, washers, ovens, vacuum cleaners and other appliances.

The telecommunications segment offers the widest range of mobile phones, telecommunications

standards and related mobile products and solutions. It provides mobile phones, key phones, network

systems, (MP3) players, digital set top boxes, computers, and others. It also provides telecommunication

systems.

The semiconductor business segment consists of three major divisions: memory, system LSI and storage

technologies. Through these divisions, it offers memory chips, system large scale integrated circuits

(LSICs), hard disk drives (HDDs) and others.

The LCD segment offers thin film transistor (TFT) LCD modules and others. This segment produces

panels for TVs, digital information displays, notebook PCs and desktop monitors, as well as various

display panels for mobile products.


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LEADING COMPANIES



In May 2008, the company reorganized its digital media segment to produce greater business synergy

and enhance its overall performance. It integrated its digital appliance segment into its digital media

operations and transferred its PC, MP3 player and set-top box businesses to its telecommunications

segment.

Samsung had a very successful first quarter of 2009. With sales of 51.4 million units, Samsung's market

share grew 4.7 percentage points to 19.1 per cent.


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LEADING COMPANIES



Key Metrics

The company recorded revenues of $108,440 million in the fiscal year ending December 2009, an

increase of 14.6% compared to fiscal 2008. Its net income was $7,529 million in fiscal 2009, compared to

a net income of $4,311 million in the preceding year.

Table 16: Samsung Electronics Co., Ltd. : key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 62,905.3 66,966.2 76,853.5 94,631.0 108,439.9

Net income (loss) 5,960.6 6,183.8 5,789.4 4,311.2 7,528.7

Total assets 58,093.4 63,480.0 72,849.1 82,153.1 92,280.1



Table 17: Samsung Electronics Co., Ltd. : key financials (SKW)

SKW million 2005 2006 2007 2008 2009

Revenues 80,629,510.0

85,834,604.0 98,507,817.0

121,294,319.0

138,994,000.0

Net income (loss) 7,640,092.0 7,926,087.0 7,420,579.0 5,525,904.0 9,650,000.0

Total assets 74,461,798.

0

81,366,206.0 93,375,136.

0

105,300,650

.0

118,281,000.

0Total liabilities 32,854,387.

033,426,339.0 37,403,228.

042,376,696.

045,227,000.0



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LEADING COMPANIES



Table 18: Samsung Electronics Co., Ltd. : key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 9.5% 9.2% 7.5% 4.6% 6.9%Revenue growth (1.6%) 6.5% 14.8% 23.1% 14.6%

Asset growth 7.9% 9.3% 14.8% 12.8% 12.3%

Liabilities growth 0.8% 1.7% 11.9% 13.3% 6.7%

Debt/asset ratio 44.1% 41.1% 40.1% 40.2% 38.2%

Return on assets 10.7% 10.2% 8.5% 5.6% 8.6%


Figure 10: Samsung Electronics Co., Ltd. : revenues & profitability



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LEADING COMPANIES



Figure 11: Samsung Electronics Co., Ltd. : assets & liabilities



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MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2014, the Italian mobile phones market is forecast to have a value of $4,678.7 million, an increase of14% since 2009.

The compound annual growth rate of the market in the period 200914 is predicted to be 2.6%.

Table 19: Italy mobile phones market value forecast: $ million, 200914

Year $ million million % Growth

2009 4,105.5 2,952.5 (4.4%)

2010 4,236.5 3,046.7 3.2%

2011 4,316.3 3,104.1 1.9%

2012 4,422.1 3,180.2 2.5%

2013 4,544.1 3,268.0 2.8%

2014 4,678.7 3,364.7 3.0%

CAGR: 200914 2.6%


Figure 12: Italy mobile phones market value forecast: $ million, 200914



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MARKET FORECASTS



Market volume forecast

In 2014, the Italian mobile phones market is forecast to have a volume of 36.3 million units, an increase of

4.4% since 2009.

The compound annual growth rate of the market in the period 200914 is predicted to be 0.9%.

Table 20: Italy mobile phones market volume forecast: million units, 200914

Year million units % Growth

2009 34.8 11.0%

2010 35.5 2.2%

2011 35.8 0.7%

2012 36.0 0.6%

2013 36.2 0.5%

2014 36.30.4%

CAGR: 200914 0.9%


Figure 13: Italy mobile phones market volume forecast: million units, 200914



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MACROECONOMIC INDICATORS




Table 21: Italy size of population (million), 200509

Year Population (million) % Growth

2005 58.1 0.1%

2006 58.1 0.1%

2007 58.1 0.0%

2008 58.1 0.0%

2009 58.1 0.0%


Table 22: Italy gdp (constant 2000 prices, $ billion), 200509

Year Constant 2000 Prices, $ billion % Growth

2005 1,147.9 0.5%

2006 1,170.2 1.9%

2007 1,187.9 1.5%

2008 1,172.3 (1.3%)

2009 1,113.7 (5.0%)


Table 23: Italy gdp (current prices, $ billion), 200509

Year Current Prices, $ billion % Growth

2005 1,739.8 2.5%

2006 1,824.3 4.9%

2007 2,059.0 12.9%

2008 2,262.5 9.9%

2009 2,022.8 (10.6%)



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Table 24: Italy inflation, 200509

Year Inflation Rate (%)

2005 1.8%2006 2.0%

2007 1.9%

2008 3.4%

2009 0.8%


Table 25: Italy consumer price index (absolute), 200509

Year Consumer Price Index (2000 =100)

% Growth

2005 112.4 1.8%

2006 114.7 2.1%

2007 116.9 1.9%

2008 120.8 3.4%

2009 121.9 0.9%


Table 26: Italy exchange rate, 200509

Year Exchange rate ($/)

2005 0.8045

2006 0.7970

2007 0.7308

2008 0.6834

2009 0.7192



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APPENDIX



APPENDIX

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,

Datamonitors 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

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- 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


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APPENDIX



Industry associations

CTIA - The Wireless Association

1400 16th Street, NW, Suite 600, Washington, DC 20036, US

Tel.: 1 202 785 0081Fax: 1 202 785 0721

www.ctia.org

Related Datamonitor research

Industry Profile

Mobile Phones in Spain

Mobile Phones in Europe

Mobile Phones in Australia

Mobile Phones in China


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APPENDIX



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