MDR_frontcover.

qxd 12/11/09 16:51 Page 1

STRATEGIC REPORT & FORECASTS

STRATEGIC REPORT
Extract
Mobile
Distribution

Mobile Distribution & Retail 6th Edition

& Retail
Channel Trends,
Strategies and
Forecasts to 2014
6th Edition
Your Mobile Operators
research just got easier…
The Mobile Operator channel of the Intelligence Centre provides complete coverage of the
strategies, tactics and trends surrounding regulation, technology, price and competition from
Worldwide Market
low-cost competitors. The service also includes detailed coverage and profiles of the top 40 Analysis, Strategic Outlook
operating groups worldwide.
& Forecasts to 2014
The Intelligence Centre includes 10 dedicated channels, each focused on a core market sector
and providing in-depth analysis, latest trends, company and country overviews, forecasts, KPI
data and a library of conference papers.

Make better business decisions, starting today.

To find out more and request a trial visit: www.intelligencecentre.net/mo

The Intelligence Centre features 10 dedicated channels:

r Broadband & Internet
r TV
r Mobile Operator
r Networks
r Mobile Content & Applications
r Mobile Handsets & Devices
r Mobile Europe www.informatm.com
r Mobile Middle East & Africa
r Mobile Asia
r Mobile Americas

www.informatm.com
 Mobile Distribution & Retail (6th Edition):
Channel Trends, Strategies and Forecasts to 2014
This comprehensive report looks at the mobile retail industry in the context
of broader market trends including operator and distributor moves to address
new areas of potential in related markets, such as rolling out new store
formats and partnering with other industry players.

The Mobile Distribution Retail report will provide new focus on

channel vs sector:
• Channel analysis – by bricks & mortar, online, direct

• Strategy analysis – for distributor and retailer level

• Effect of new products assessed – netbooks and connected devices

• Retail distribution models – flagship store vs specialist service

• Channel management – web/contact and centre/retail partner

• Software solutions for retail – ERP, CRM, customer support and training

• Store numbers – regional forecasts by sector and channel to 2014

• Case studies and profiles – for key players throughout the supply chain.

“Mobile retail is increasingly multi-channel and

multi-format: managing this change will be key to the
future customer experience.
Richard Jesty, Senior Research Analyst, Informa Telecoms & Media ”

For more information visit www.informatm.com/mdr-report

© 2009 Informa UK Ltd.

All rights reserved.
The contents of this publication are protected by international copyright laws, database rights and other intellectual property rights. The owner of these rights is Informa UK Ltd, our affiliates or other third party licensors.
All product and company names and logos contained within or appearing on this publication are the trade marks, service marks or trading names of their respective owners, including Informa UK Ltd. This publication may
not be:-
(a) copied or reproduced; or
(b) lent, resold, hired out or otherwise circulated in any way or form without the prior permission of Informa UK Ltd.
Whilst reasonable efforts have been made to ensure that the information and content of this publication was correct as at the date of first publication, neither Informa UK Ltd nor any person engaged or employed by
Informa UK Ltd accepts any liability for any errors, omissions or other inaccuracies. Readers should independently verify any facts and figures as no liability can be accepted in this regard - readers assume full responsibility
and risk accordingly for their use of such information and content.
Any views and/or opinions expressed in this publication by individual authors or contributors are their personal views and/or opinions and do not necessarily reflect the views and/or opinions of Informa UK Ltd.
MDR_frontcover.qxd 12/11/09 15:40 Page 1

STRATEGIC REPORT & FORECASTS

STRATEGIC REPORT
Extract
Mobile
Distribution

Mobile Distribution & Retail 6th Edition

& Retail
Channel Trends,
Strategies and
Forecasts to 2014
6th Edition
Your Mobile Operators
research just got easier…
The Mobile Operator channel of the Intelligence Centre provides complete coverage of the
strategies, tactics and trends surrounding regulation, technology, price and competition from
Worldwide Market
low-cost competitors. The service also includes detailed coverage and profiles of the top 40 Analysis, Strategic Outlook
operating groups worldwide.
& Forecasts to 2014
The Intelligence Centre includes 10 dedicated channels, each focused on a core market sector
and providing in-depth analysis, latest trends, company and country overviews, forecasts, KPI
data and a library of conference papers.

Make better business decisions, starting today.

To find out more and request a trial visit: www.intelligencecentre.net/mo

The Intelligence Centre features 10 dedicated channels:

r Broadband & Internet
r TV
r Mobile Operator
r Networks
r Mobile Content & Applications
r Mobile Handsets & Devices
r Mobile Europe www.informatm.com
r Mobile Middle East & Africa
r Mobile Asia
r Mobile Americas

www.informatm.com
MOBILE DISTRIBUTION & RETAIL:
6TH EDITION

Extract
This report brings together Informa Telecoms & Media’s latest forecasts on the mobile retail
and distribution market, and highlights new and emerging trends and issues such as the
convergence between the mobile and consumer electronics sectors and effective channel
management. A number of profiles of key players are presented in Chapter 7, enabling a
detailed drill-down into the activities of distributors, device manufacturers and retailers.

Evolution of distribution
The evolution of the distribution supply chain is set out briefly here in order to provide a
context for the analysis of the mobile industry.

The distribution and retail supply chain today is a complex interactive network which serves
many types of end user via a number of different channels. In particular, the online route has
developed over recent years, but so have more sophisticated developments such as reverse
logistics which can handle recycled products at the end of their useful life.

Traditional network
In the traditional distribution network, the various roles are relatively simple; essentially, they
are intended to bring physical products (for example, IT hardware or mobile handsets) to the
consumer or business user via the manufacturer/distributor/retailer route. This two-tier supply
chain allows manufacturers to sell their products to distributors, the distributors in turn sell
the products to resellers, and those resellers sell to end-user businesses and individuals.

Distribution network evolution

A more complex distribution network has developed since the 1990s. This model shows a
number of evolutionary trends, such as the outsourcing to specialists of some production roles
and also some logistics and distribution functions. Routes for hardware (PCs, mobile phones
and accessories, for example) have settled over time but distribution routes for services
(online/digital products) have yet to mature and the chain is still developing. The most
obvious difference between the more complex distribution model and the traditional one is
the number of inter-relationships and interdependencies that are being introduced, both at
the same level in the supply chain and vertically along it. Another significant difference is the
involvement of mobile network operators in the retail distribution of products, whereas IT
manufacturers typically outsource their distribution.

© Informa UK Limited 2009. All rights reserved.

 MOBILE DISTRIBUTION & RETAIL:
6TH EDITION

Information and communications technology (ICT) players, such as IT distributors, have

tended to carry a wider range of products (from high-end servers through to PDAs and
laptops) and have also provided a range of software products and services aimed at both the
business and consumer sectors. Mobile distributors have tended to specialize in hardware,
and have been less strong in software and services. As the mobile market has developed, both
in terms of the size of business sector and of the greater willingness to outsource amongst
mobile industry players, the mobile distributors are moving towards offering a broader range
of services.

Retail segmentation
In this report, the retail market is analysed from three different aspects: sector (type of store),
product (devices, content) and channel (traditional/bricks and mortar, Web/online, direct).
Each of these perspectives is an influence on current and future trends, and on industry
players’ strategies. Channel management, for example, is becoming a key issue for device
manufacturers and content providers as well as for service providers and retailers.

Figure 1.1: Retail segmentation

SECTOR
Product

Channel

Source: Informa Telecoms & Media

In retail distribution, the mobile network operators are unique in their involvement with
fully-owned chains of specialist stores. This type of outlet has no parallel in the IT distribution
world, where national retail chains typically offer wide ranges of consumer electronics and
other electrical appliances, sometimes with “shop-in-shop” concessions for mobile products.
As a result, impartial advice at the point of sale is often lacking for would-be mobile users. This
market gap has been successfully addressed in Europe by Carphone Warehouse and its

© Informa UK Limited 2009. All rights reserved.

MOBILE DISTRIBUTION & RETAIL:
6TH EDITION

competitors, while, in North America there is still considerable potential for this type of
operation, as the recent launch of Best Buy Mobile has demonstrated.

Figure 1.2: Mobile retail segmentation

Size

Mass market:
supermarkets

Mass market:
consumer
Specialization electronics

Specialists
Independents

Source: Informa Telecoms & Media

Mobile content distribution

Mobile content and data are value-added services, over and above basic voice services, which
provide users with entertainment and information. Content is provided to customers by a
variety of means from basic SMS to multimedia, such as images, audio and video. These are
the services that are provided on a one-to-many basis in the first instance, although content
providers are beginning to realize the opportunities for viral marketing and peer-to-peer (P2P)
distribution. In consumer services, mobile content includes the following:

• Communication: including P2P messaging, mobile e-mail and instant messaging.

• Entertainment: including games, music, video and TV, images, gambling and
social networking.

• Information: including Internet browsing, location-based services and mobile

payments/banking.

Mobile retail sectors

Mobile retailing is the management of sales of mobile phones, devices, accessories and
services to end users, and comes as the last intermediary in the distribution chain. Physical
“bricks and mortar” stores constitute the most widely-used retail channel, although other
channels, such as kiosks, store-in-store outlets or online, may also be part of the mix.

© Informa UK Limited 2009. All rights reserved.

 MOBILE DISTRIBUTION & RETAIL:
6TH EDITION

There are four main sectors within mobile retailing:

• Operator-owned: This sector includes chains of stores, Web sites and other retail channels
that are fully owned by a mobile network operator. Operator stores are typically located
in inner-city areas with high pedestrian traffic, although there is a trend in many regions
towards inhabiting larger retail sites out of town. This category also includes franchised
stores that are branded to an operator and whose device sales are supported by that
operator. Vendor-owned outlets are less ubiquitous, although are growing in importance,
particularly in Asia Pacific. They are often seen as “flagship” stores to show off a vendor’s
full range of handsets and accessories.

• Specialist: These retailers sell mobile phones and accessories exclusively or as a central part
of their product range. Specialist retailers include Carphone Warehouse and the Phone
House in Europe, The Mobile Store in India and Crazy John’s in Australia.

• Mass market: This category covers the large, mass-market, non-specialist retailers. These
include international supermarket chains such as France-based Carrefour or Tesco in the
UK, consumer electronics stores like Best Buy in the US, and large, national or regional
supermarkets such as Spinney’s in the United Arab Emirates.

• Independent: This is the largest mobile sector globally in terms of number of outlets, but
the average store size tends to be smaller than in other mobile retail sectors and store
numbers in the developed markets have been falling in recent years. The independent retail
category can include family-owned single outlet stores as well as street vendors and market
stalls. Due to their size, independent retailers tend not to employ direct channels such as
online or telesales. Independent retail operations are not controlled by any one operator
or manufacturer, although they may be affiliated to a large marketing support group, such
as Expert in Switzerland or Electronic Partner in Germany.

Future market landscape

The future distribution and retail landscape is likely to become even more complex and
inter-related, as the business sector becomes more important, and operators increasingly
target enterprise users in small and medium-sized companies as well as larger corporates and
public sector organizations.

The consumer sector is likely to remain more important in terms of revenues for operators
and service providers, but the move towards providing services over the mobile network or
over the Internet will place a higher emphasis on channel- and partner-management systems.
Bricks and mortar retailing will remain the most important channel for mobile devices, but
online shopping will become a more significant feature in all the geographic regions, not just
the mature markets of Western Europe, North America and Asia Pacific.

© Informa UK Limited 2009. All rights reserved.

 Contents
CHAPTER 1
EXECUTIVE SUMMARY ...........................................................1
Evolution of distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Traditional network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Distribution network evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Retail segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Figure 1.1: Retail segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Figure 1.2: Mobile retail segmentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Mobile content distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Mobile retail sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Future market landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Figure 1.3: Evolved distribution and retail network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Figure 1.4: Market positioning in the mobile distribution and retail market . . . . . . . . . . . . . . . . . . . . . . . 5
Market strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Specialist retailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Channel management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Figure 1.5: Distribution channel management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 1.6: Global mobile retail revenues by sector, 2009 vs. 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 1.7: Global mobile retail revenues by channel, 2009 vs. 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figure 1.8: Global mobile retail revenues by product, 2009-2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figure 1.9: Global mobile retail revenues by region, 2009-2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Figure 1.10: Global mobile retail revenues, devices by type, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . . 10
Figure 1.11: Global mobile retail revenues, content by type, 2009 vs. 2014. . . . . . . . . . . . . . . . . . . . . . . 11
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Mobile distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Mobile logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Reverse logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Mobile network operator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Mobile virtual network operators and service providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Value-added services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Mobile content and data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

CHAPTER 2
M A R K E T O V E R V I E W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Mobile distribution and retail evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Traditional network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 2.1: Traditional distribution network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Market convergence: Mobile, ICT and mass market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Distribution network evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 2.2: Market convergence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 2.3: Business sector distribution network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 2.4: Consumer sector distribution network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Current status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
 Figure 2.5: Retail segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Consumer electronics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 2.6: Top 10 consumer electronics retailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Mobile retail segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 2.7: Mobile retail segmentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 2.8: Three-way approach to mobile retail segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Product. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Figure 2.9: Mobile broadband devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Figure 2.10: UK, frequency of mobile broadband usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Mobile content distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Mobile retail sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Store numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Mobile retail industry: regional markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Fig. 2.11: Global mobile retail store numbers, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure 2.12: US, AT&T Store featuring iPhone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Latin America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Asia Pacific, developing markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Figure 2.13: China, Go Me store. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Asia Pacific, developed markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Western Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Figure 2.14: Germany, O2 flagship store in Berlin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Eastern Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Middle East . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Trends in mobile distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Value-added services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Trends in mobile retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Mobile handsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Figure 2.15: Global mobile handset sales, 2008-2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Future trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Mobile content and data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Future market landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Figure 2.16: Evolved distribution and retail network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Figure 2.17: Market positioning in the mobile distribution and retail market . . . . . . . . . . . . . . . . . . . . . 40
Mobile distribution and retail definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Mobile distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Mobile logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Reverse logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Mobile network operator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Mobile virtual network operators and service providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Value-added services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Mobile content and data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

CHAPTER 3
M O B I L E D I S T R I B U T I O N A N D R E T A I L S T R A T E G I E S O V E R V I E W . . . . . . . . . . . . . . . . 43
Distribution channel trends – IT and mobile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Figure 3.1: Product-based vs. fee-based services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
The role of the distributor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
The role of the reseller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Figure 3.2: Core competencies – vendor/distributor/reseller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Market strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Device manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Brightpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Figure 3.3: Brightpoint business areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Tech Data and Brightstar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Developed market strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
O2’s Retail Transformation Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Figure 3.4: A new look for O2’s stores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Orange and HMV joint venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Vodafone Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Emerging market strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Retailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Carphone Warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Figure 3.5: Carphone Warehouse and Best Buy strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Carphone Warehouse and Best Buy joint venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Media Market-Saturn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
GoMe – specialist phone stores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

CHAPTER 4
K E Y I S S U E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Mobile content distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Direct-to-consumer distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Fig. 4.1: Outsourcing mobile content distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Revenue sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Mobile content – channel trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Current situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Fig. 4.2: Importance of various sales channels for mobile content sales, 2008 . . . . . . . . . . . . . . . . . . . . . . 66
Future trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Fig. 4.3: Importance of various sales channels for mobile content sales, 2013 . . . . . . . . . . . . . . . . . . . . . . 67
Grey market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Fig. 4.4: European mobile recycling market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Case study: Greener Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Fig. 4.5: Greener Solutions’ business model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Fig. 4.6: Greener Solutions reuse/recycling process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

CHAPTER 5
M O B I L E C O N S U M E R A N D B U S I N E S S S E C T O R R E T A I L C H A N N E L S . . . . . . . . . . . . . 73
Consumer sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Figure 5.1: Consumer sector distribution channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Nokia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Figure 5.2: Nokia flagship store – Mexico City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Figure 5.3: Nokia Vertu store – Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Apple . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Figure 5.4: Apple store numbers, 2006-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Figure 5.5: Apple flagship store - New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Apple retail store staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Figure 5.6: Apple channel strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Carphone Warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Figure 5.7: Carphone Warehouse strategy development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Figure 5.8: Carphone Warehouse concept store . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Business sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Figure 5.9: Business sector distribution channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Figure 5.10: Core competencies – vendor/distributor/reseller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Hosted software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Tech Data’s managed services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
O2’s business strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Nokia for Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

CHAPTER 6
M O B I L E D I S T R I B U T I O N C H A N N E L M A N A G E M E N T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Figure 6.1: Distribution channel management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
CompUSA – Retail 2.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Figure 6.2: CompUSA Retail 2.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Partner management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Figure 6.3: Partner management processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Apple dealer selection criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Figure 6.4: Apple VARs - dealer criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Retail commission structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Figure 6.5: Using distribution channels to aid retention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
KPN – retailer bonus restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Figure 6.6: KPN stepped commission structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Point of sale support systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Figure 6.7: Inpowered product management module. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Figure 6.8: Inpowered administrative function. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Figure 6.9: Fizzback system overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Aligning the channel with the product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Figure 6.10: Value add vs. cost of sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

CHAPTER 7
P R O F I L E S O F K E Y P L A Y E R S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Brightstar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Figure 7.1: Brightstar’s regional organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Figure 7.2: Brightstar revenues, 2004-2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Figure 7.3: Brightstar operations focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Brightpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Figure 7.4: Brightpoint regional organization, end-08 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Figure 7.5: Brightpoint, shares of units handled and revenues for product distribution
and logistics services, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Figure 7.6: Brightpoint suppliers and customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Figure 7.7: Brightpoint revenues 2004-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Figure 7.8: Brightpoint revenues by regional market shares, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Tech Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Figure 7.9: Tech Data revenues, 2004-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Figure 7.10: Tech Data revenues by regional market shares, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Figure 7.11: Tech Data revenues by segment, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Figure 7.12: Tech Data revenues by customer type, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Solution providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
SAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Figure 7.13: SAP service elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Figure 7.14: SAP product portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Figure 7.15: SAP revenues, shares by service, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Figure 7.16: SAP revenues, shares by by region, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Oracle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Figure 7.17: Oracle retail offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Figure 7.18: Oracle revenues, 2007-2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Figure 7.19: Oracle revenues by region, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Figure 7.20: Oracle revenues by service, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Nokia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Devices & Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Figure 7.21: Nokia manufacturing locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Figure 7.22: Nokia revenues, 2006-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Figure 7.23: Nokia revenues by regional market shares, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Figure 7.24: Nokia flagship store – Mexico City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Figure 7.25: Nokia Vertu store – Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Apple . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
 Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Figure 7.26: Apple store numbers, 2006-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Figure 7.27: Apple revenues by segment, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Figure 7.28: Apple retail sales, 2006-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Figure 7.29: Apple flagship store - New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Figure 7.30: Apple channel strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Retailers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Best Buy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Figure 7.31: Best Buy Mobile store . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Figure 7.32: Best Buy revenues and number of stores, 2004-2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Figure 7.33: Best Buy revenues by segment, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Carphone Warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Figure 7.34: Carphone Warehouse store network, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Figure 7.35: TalkTalk and Best Buy Europe revenue shares, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Figure 7.36: TalkTalk and Best Buy Europe revenues, 2008 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . 129
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Figure 7.37: Carphone Warehouse strategy development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Figure 7.38: Carphone Warehouse concept store . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Figure 7.39: CPW current structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Figure 7.40: CPW planned structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Metro Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Figure 7.41: Media Markt store . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Media Markt and Saturn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Figure 7.42: Media Markt-Saturn revenues by regional market shares, 2008 . . . . . . . . . . . . . . . . . . . . 134
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
GoMe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Figure 7.43: GoMe revenues and number of stores, 2004-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Figure 7.44: GoMe regional store network, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

CHAPTER 8
F O R E C A S T S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Forecasting methodology and definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Content. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Figure 8.1: Forecast market segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Global forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Figure 8.2: Global mobile retail revenues by sector, 2009-2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
 Figure 8.3: Global mobile retail revenues by channel, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Figure 8.4: Global mobile retail revenues, sector vs. channel, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . 146
Figure 8.5: Global mobile retail revenues by product, 2009-2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Figure 8.6: Global mobile retail revenues by region, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Figure 8.7: Global mobile retail revenues, devices by type, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . . 149
Figure 8.8: Global mobile retail revenues, content by type, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . . 150
Regional forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Figure 8.9: North America mobile retail revenues by channel, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . 151
Figure 8.10: North America mobile retail revenues by sector, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . 152
Latin America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Figure 8.11: Latin America mobile retail revenues by channel, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . 153
Figure 8.12: Latin America mobile retail revenues by sector, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . 154
Asia Pacific. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Figure 8.13: Asia Pacific mobile retail revenues by channel, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . 155
Figure 8.14: Asia Pacific mobile retail revenues by sector, 2009-2014. . . . . . . . . . . . . . . . . . . . . . . . . . 156
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Figure 8.15: Europe mobile retail revenues by channel, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Figure 8.16: Europe mobile retail revenues by sector, 2009-2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Middle East/Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Figure 8.17: Middle East/Africa mobile retail revenues by channel, 2009-2014 . . . . . . . . . . . . . . . . . . 159
Figure 8.18: Middle East/Africa mobile retail revenues by sector, 2009-2014 . . . . . . . . . . . . . . . . . . . . 160
 About the Author

Richard Jesty is a senior consultant with Informa Telecoms & Media , where
he focuses on mobile content and services worldwide. Over the past four
years, he has built up an in-depth knowledge of the market, developing
in-house original online research amongst Informa Telecoms & Media's
extensive database of telecoms professionals, and carrying out a number of
consultancy assignments in Europe and the US.

Richard has worked in research-based IT and telecoms consultancy for fifteen

years, and has gained first-hand experience of vertical industry needs and
requirements, especially in the service sector (covering the retail/distribution
and financial services industries).

At Informa Telecoms & Media, Richard is the lead author of a range of

strategic reports focusing on the global mobile services market including:
Mobile Distribution and Retail, Mobile Payments, Mobile Content &
Applications and Mobile Enterprise. These reports review current and future
market segmentation across the major regions (Europe, Americas and Asia
Pacific), and analyse the market drivers and opportunities for mobile solutions
across a number of vertical industries.

Richard is a frequent speaker and chair at international conferences and has

made many presentations on the future development of mobile services, and
the opportunities for mobile value chain players. He has recently chaired and
presented at a mobile payments conference in Singapore and has led
international seminars in the USA on e-security and on revenue generation
from new mobile services.

Before joining Informa Telecoms & Media, Richard was with Financial Times
Business in London, where he was responsible for establishing and developing
a new research unit. Richard is a member of the Chartered Institute of
Marketing in the UK, and holds a diploma from the Institute.
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The Mobile Handsets & Devices Intelligence Centre provides in-depth analysis of mobile device
trends, and a detailed evaluation of key industry challenges across the technology value chain. It also
provides a comprehensive analysis of global markets and technology evolution, with detailed forecasts
for 2.5G, 3G and now 3.5G and 3.9G handsets from 2009 to 2014.

www.informatm.com
Please call us on +44 (0)20 7017 5537 or visit www.intelligencecentre.net/handsets to arrange for a free demonstration
www.informatm.com

www.informatm.com