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Handset Manufacturer’s Perspective

Handset Manufacturer’s Perspective. Joe Weller General Manager Siemens Mobile Phones. Handset Volumes – Healthy Growth!. Re-introduction of subsidies and colour screen handsets driving the turn-around in the market. Source: AMTA Industry Figures. High End Phone Model Mix ($799+ RRP).

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Handset Manufacturer’s Perspective

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  1. Handset Manufacturer’sPerspective Joe Weller General Manager Siemens Mobile Phones

  2. Handset Volumes – Healthy Growth! Re-introduction of subsidies and colour screen handsets driving the turn-around in the market Source: AMTA Industry Figures ICM MP September 25,2003 2

  3. High End Phone Model Mix ($799+ RRP) Introduction of camera/MMS/ colour screen handsets has swung the mix more towards high end phones 2003 YTD Handset ASP has increased by 10% compared to 2002 Source: AMTA Industry Figures ICM MP September 25,2003 3

  4. Cause & Effect Operator Strategy As the Operators try to raise their ARPU, they push features like MMS capability, colour display, integrated camera. Effect: 1XRTT Nearly half of CDMA phones sold this year are 1XRTT capable MMS One third of all GSM phones sold this year are MMS capable...although how many are enabled & used? ICM MP September 25,2003 4

  5. Trend Is Set To Continue… Market Value (Euros m) Source: Deutsche Bank Report Apr 2003 ICM MP September 25,2003 5

  6. Directions in Handset Development Improved User Interface ...increases likelyhood of higher ARPU ICM MP September 25,2003 6

  7. Directions in Handset Development Customised Interfaces ...allow for Carrier differentiation ICM MP September 25,2003 7

  8. Directions in Handset Development Engaging Applications / Services ...via open platforms & java ...delivered to the market faster ICM MP September 25,2003 8

  9. Industry Challenges • How do we find compelling applications? • How do we make them easy to use? • How do we price them to encourage usage? • How do we tell people they exist? • How do we teach our channels to sell? Source: Credit Suisse/First Boston ICM MP September 25,2003 9

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