The wireless medium is a big money spinner !

Imagine a scenario where you are seeding about 6 million handsets in the market every month in the country (India). About 70 million handsets last calendar year and expected to be close to 85 - 90 million this year.

Windfall for the handset makers you believe ? wrong.
Profit margins are being slashed by the handset manufacturers’ to get the volumes since the complete action is concentrated in the lower end of the market where margins are wafer thin. In fact some of the handset makers are selling some of their lower end models at a discount to roll out their stocks and realize revenues locked up in the warehouses which can be recycled into putting up new plants which can roll out fancy gizmos. These gizmos in turn would replace the old generation devices which are getting out of fashion (the upgrade cycle). The replacement period for hand-phones has com down to 3 months from about 18 months which was the norm 5 years ago since the consumer now is spoilt for choices. This actually makes for a gestation period.