BOSTON-Although the global wireless equipment market experienced a 2-percent recovery in 2003, darker days are ahead, according to a new Yankee Group report, “Infrastructure Equipment Market Sees an End to the Revenue Freefall, at Least for Now.”
The analyst firm expects a 1-percent increase in 2004 but expects a decline in the ensuing years of $40 billion by 2008 and cites pricing declines near 20 percent each year as the culprit, creating continued and increasing challenges for major wireless infrastructure players.
Between 2002 and 2007, equipment expenditures as a percentage of total wireless service provider revenue will decline from 11.3 to 6.8 percent, said Yankee.