DUBLIN, Ireland—A new report from U.K.-based analysts Strategy Analytics suggests that a number of handset vendors could be prime targets for larger rivals. The report, “Western Europe Operators’ Handset Vendor Strategies,” indicates that while Alcatel, Philips and Sagem handsets are sold by half of all operators in Western Europe, they account for only 13 percent of shipments in the region.
According to Strategy Analytics, this combination of strong distribution and weak market share makes them attractive partners for vendors like Siemens, which need additional scale, or vendors, such as NEC, Samsung, LG and Toshiba, which require affiliation with priority operators.
“Strong distribution relationships with operators is the critical success factor in the emerging Western European smart device market,” said Neil Mawston, industry analyst with the Strategy Analytics Global Wireless Practice. “Acquisition or merger activity between established, albeit niche, slim profit profile vendors such as Alcatel, Philips and Sagem and innovative design-driven Asian vendors is a strong possibility in the next 12 to 18 months.”
