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New players, business models and market trends that are changing the economics and dynamics of delivering uniquely customised handsets

S E C T O R

R E P O R T
The New Age of Handset Customisation: 2006 - 2011

August 2006

Andreas Constantinou, PhD Lead Analyst
Matt Lewis, PhD Research Director
ARCchart Ltd 3 Finsbury Square London EC2A 1LN UK Tel: +Fax: +Email: service@arcchart.com
The New Age of Handset Customisation: 2006-2011

Executive Summary

Handset customisation is a standard practice across the mobile industry. Mobile network operators (MNOs) enforce a range of modifications to manufacturer handsets to improve service interoperability and discovery. However, customisation is now working its way into the physical form factor of the device, as well as the graphical user interface. MNOs like Vodafone and Nordisk Mobiltelefon have launched completely customised phones to better address the needs of specific customer segments. New-age MVNOs such as AMPd, ESPN and Voce, are deploying customised handsets to appeal to niche market segments. Handset manufacturers of all sizes and types are evolving their product portfolio towards differentiated devices that appeal to niche audiences. Finally, consumer and lifestyle brands such as ELLE and ESCADA, are diversifying into mobile handsets in search of brand extension opportunities and greater profits. This report examines the industry evolving around uniquely customised handsets (UCHs). We believe that the coming years will see a proliferation of uniquely customised handsets, which have both distinguished industrial design and a customised user interface, to target niche consumer segments. This will meet an increased demand for variety and personalisation in phone colours, styles and form factors, as handset cosmetics become a key purchase criterion for consumers. Market precedents such as Vertu, Xelibri, ESCADA, Firefly, Vodafone Simply, Dmobos Disney-themed M900, i-kids, ELLE Glamphone, Bang & Olufsen Serene, Goldvish, Casio G-Zone, Voce, Jitterbug and Nordisk MobilTelefon have paved the way for uniquely customised handsets, targeted at a wide range of segments, including kids, fashionable females, tweens, teenagers, sports enthusiasts, senior citizens and VIPs. Manufacturers: striving for segmentation With the top six manufacturers seeing their profit margins shrink to 11% in 2005, OEMs of all sizes are increasingly turning to sophisticated handset customisation to appeal to niche customer segments. Motorola, Nokia, Sagem and LG have used superficial plastics re-finishing, often with a co-branding approach. Innovative Tier-2 and Tier-3 OEMs such as TCL Alcatel are spawning internal business units to deliver UCHs. ODMs such as HTC continue to facilitate handset customisation, while ODEs such as Cellon, TechFaith and FG Wireless, are improving the economics of producing differentiated handset designs for brands, MVNOs and MNOs. We believe that Customised Design Manufacturers (CDMs) will be the primary route for the design and distribution of uniquely customised handsets to 2009. CDM is a term coined by ARCchart for the fabless manufacturer that brings together all the stages of the handset commercialisation process, without many of the fixed costs associated with an OEM. A CDM combines brand licensing with handset industrial design, outsourced manufacturing, quality control, distribution, reverse logistics retailing and can also include an after-sales, on-device service proposition integrated on the handset. i-mate, modelabs, Tedemis and TCL Alcatel (an OEM with an in-house CDM unit) are the first, defining examples of a customised design

ARCchart Research

The New Age of Handset Customisation: 2006-2011 manufacturer. We believe that within the next five years, CDMs will be a route to market that hundreds of brands, service providers, MVNOs and eventually MNOs will exploit. Operators and MVNOs: Time for handset innovation With a one-size-fits-all brand and unclear brand deliverables, the benefits of operator handset customisation have yet to be rigorously proven. The MNO approach to handset customisation needs rejuvenation, and the report examines the more targeted approaches to customisation taken by MVNOs. Firefly, Helio, AMPd, Disney, ESPN and Voce have pioneered an innovative value proposition: targeting niche customer segments, not only with appropriate content and services, but also with a uniquely

customised device as a core part of the value proposition. Vodafones Simply and the forthcoming Nordisk MobilTelefon rugged handset present exemplary operator forays into UCHs. We expect most Tier-1 operators to be launching uniquely customised handsets as an evolution of their product segmentation strategies in order to better retain customers and extract higher revenues from each segment. Consumer brands: the new force in mobile handsets The report identifies consumer and lifestyle brands as an emerging force in the handset industry in the coming years. With falling barriers for entry into the handset market, brands are eyeing opportunities for brand extension and increased revenues in the 1 billion handset-a-year market. The case studies of ELLE, Airness, Elite Model and ESCADA show how a brand extension in the form of uniquely customised mobile phones can prove successful. The new economics of handset customisation The barriers to handset commercialisation are falling. The report identifies twelve stages of commercialisation and discusses the new players that are arriving to integrate many of these segments: from brand licensing, industrial design and hardware design, to distribution, retailing and customer support. Beyond customised design manufacturers, we believe that another route to market is appearing for UCHs: value added distributors (VADs). Case studies of VADs such as Emporia Telecom, Dangaard Telecom and Brightpoint show how the logistics operations of many distributors will be expanding to offer not only superficial handset customisation, but also brand licensing and tailored services in search of increased profit margins. The technology for end-to-end user interface customisation that has recently become available from vendors such as Digital Airways, e-SIM, MSX and TAT will substantially reduce the cost and time-tomarket for delivering handsets with uniquely styled user experiences. Overall, the handset software will transform to configurable software stacks enabling both UI customisation as well as service development and deployment, while maintaining time-to-market to under 6 months. Market Trends: 2006-2011 ARCchart estimates that UCHs will account for less than 0.5% of the global handset market in 2006. However, this will grow aggressively over the next five years, facilitated by the rise of the customised design manufacturers, the extension of lifestyle brands towards mobile phones, and UCHs featuring more centrally within the MNO and MVNO strategy. These trends will force the Tier-1 OEMs to assign a growing proportion of their handset portfolios over to uniquely customised devices in order to stay competitive. By 2011, we estimate that 234 million uniquely customised handsets will ship, accounting for about 19% of the global market. Eventually, we believe handset customisation will become a mainstream activity that will be outsourced to handset system integrators, a new type of intermediary that will leverage economies of scale between operators and manufacturers.

Contents

EXECUTIVE SUMMARY

PREFACE

| Organisation of the report....1 | Companies and products reviewed....2 | Methodology and interviews....2
CHAPTER A. The Quiet Revolution A.1 | 1990-2000: The handset as the network endpoint...3 A.2 | 20012005: The Handset as a medium for branding and service access..4 A.3 | 2006-2011: Uniquely customised handsets...4
CHAPTER B. The Market Today B.1 | The status of handset customisation today...6 B.2 | Uniquely customised handsets....7
| What is handset customisation?....7 | Uniquely customised handsets...7
B.3 | Uniquely customised handsets: global update...8
CHAPTER C. Manufacturers: Disruptive Times in The Age of Customer Segmentation C.1 | Striving for customer segmentation.... 11
| The struggle for profit margins.... 11 | Charting segments and market niches.... 12
C.2 | Diversity in manufacturer positioning.... 13 OEMs, ODMs, ODEs, EMSs, CDMs and OBEs... 13 Continued growth in outsourced handset production.. 15 C.3 | OEMs: Innovative but organisationally handicapped... 16
| OEM handset innovation, fashion and style... 16
Superficial handset customisation.... 16 Independent subsidiaries: Vertu and Xelibri... 20 Uniquely customised handsets: Samsung and Casio... 21
| Organisationally handicapped.... 21
Disconnected handset sub-teams.... 22 The limitations of economies of scale... 23 C.4 | ODMs: Facilitating customised devices... 24
| HTC, a prime example of a handset customiser... 24
C.5 | ODEs: Changing the economics of customisation.. 25

| FG Wireless.... 25

Positioning and revenue model... 26 Development process.... 26 Strategy.... 26

| Cellon.... 27

Positioning and business model.... 27 Services and technology... 28 C.6 | Case studies of uniquely customised handsets... 30
| Xelibri: lessons learned.... 30
A bold experiment in fashion handsets... 30 The year in the life of the Xelibri range.... 30 What Xelibri did right.... 31 Where did Siemens go wrong?... 32
| The Siemens ESCADA project.... 33
A repeated success in handset co-branding... 33 How the ESCADA project benefited from the Xelibri experience.. 34
| Bang & Olufsen.... 35
Bang & Olufsen, a $600m brand... 35 From concept to design.... 36 The handset.... 36 Market reaction and strategy.... 37
| The ELLE GlamPhone by Alcatel... 37
A brand, a matchmaker and a manufacturer... 38 From design to distribution.... 39 Inside and outside the GlamPhone.... 39 Market reaction and strategy.... 40

| i-kids: a customised kids handset... 40 | Vertu by Nokia..... 41
Vertus brand DNA: obsessive craftsmanship... 41 The Signature and Ascent handsets... 42 Exclusive materials and precision engineering... 43 Commodity hardware and lightly customised UI.. 43 Concierge service.... 43 Market reaction.... 43

| Goldvish..... 44

Competition in the horizon.... 44 VIPN Black Diamond.... 45 C.7 | Manufacturer handset customisation: 2006-2011... 46
CHAPTER D. Operators & MVNOs: Time for Handset Innovation D.1 | The ageing state of operator handset customisation... 48
| Handset customisation today... 49
Raison d'tre.... 49 Handset branding.... 49 Network service interoperability.... 50 Usability and service promotion.... 50 Industrial design and aesthetics.... 52
| The benefits to operators.... 52 | A minefield of challenges.... 53
One brand to rule them all?.... 53 Development cost on the rise... 54 Longer development and lead times... 54 Organisational constraints.... 54 Technology fragmentation.... 54 Partner competition.... 54 Operators must innovate... 55 D.2 | MVNOs: Reinventing the handset.... 55 Handsets at the core of the MVNO proposition... 55
| Firefly Mobile: Designed for tweens... 56
Go-to-Market strategy.... 57 Market reaction and company strategy... 58

| Disney Mobile.... 58

Disneys surprisingly limited handset customisation... 58 The Dmobo Disney-branded handsets.... 60

| Helio..... 61

Korean handsets, with a touch of customisation.. 61

| Ampd Mobile.... 62

The handsets.... 62

| Mobile ESPN.... 63

Handset design: A low risk strategy and exacting product definition.. 63
The handset at the forefront of the ESPN experience... 64 Market reaction.... 65 Strategy: more devices by end of 2006... 66

| UIEvolution..... 66

The UIEngine application environment... 66

| Voce MVNO.... 67

Exclusive leather-moulded handsets... 67
| Jitterbug MVNO..... 68 | MVNOs: towards uniquely customised handsets... 69 | MVNEs: Handset customisation as service... 69
D.3 | Operator strategies in handset customisation... 70
| Exclusive partnerships..... 70
The 5-year Huawei agreement.... 70
| Co-branded handsets.... 70
Vodafone Ferrari.... 70 T-Mobile, Robbie Williams and Sony Ericsson... 71
| Middleware investments.... 72
Vodafone to facilitate a more aggressive move... 72 Behind Vodafones S60 announcement... 73 The Vodafone-DoCoMo Linux-based reference platform.. 73
| From DoCoMo to Vodafone Simply and Orange Experience.. 74
DoCoMo and KDDI: Leading the way... 74 Inside the Vodafone Simply Proposition... 75 Mid 2007: the Orange Experience handsets... 77
| Operator-led Handset Innovation.... 78

T-Mobiles vision: Multi-modal access... 78 D.4 | Operator-led handset customisation: 2006-2011... 78
| MVNOs..... 78 | MNOs.... 79
Own-brand handsets.... 79 Co-branded handsets... 79 Wholesale..... 79
CHAPTER E. Consumer Brands: The New Force in Mobile Handsets E.1 | Brands and Mobile.... 80
| Whats in a brand?.... 80 | Brands in the mobile industry... 82 | Lack of brand differentiation.... 82
Lack of manufacturer brand differentiation... 82 Obscure operator brand deliverables... 82 Is brand building only about time and money?... 83 The absence of consumer brands: an unbalanced equation.. 83
E.2 | Consumer brands and mobile content... 83 Branded content everywhere... 84 Brands using On-Device Portals... 84 The future of branded content looks bright... 84 E.3 | Branded Handsets: The new frontier.... 85
| Branded handsets as a line extension.... 85
Consumer electronics as a brand extension... 86 The unique proposition of branded handsets.. 86
| The incentives for brands.... 87
New revenue sources.... 87 Attractive margins..... 88
| The barriers to market entry.... 88
Limited know-how..... 89 Manufacturer flexibility.... 89 Operator inertia.... 90 Channel pricing, capabilities and retail experience... 90 Lack of technology kudos.... 91 E.4 | Beyond 2006: The Future of Branded Handsets... 91
| Which brands are best suited to brand handsets?... 92 | The Route To Market.... 92
1. The MVNO route.... 92 2. The Customised Design Manufacturer (CDM) route.. 93 3. The Value-Adding Distributors (VAD) route... 93 Technology as a catalyst... 93
CHAPTER F. The Silk Road of Customised Handsets F.1 | The path to handset commercialisation: From design to distribution.. 94 Cost and time-to-market.... 95
| Brand licensing.... 95 | Market research..... 96 | Industrial design..... 96 | Hardware design.... 97 | Handset assembly and manufacturing.... 97 | Software integration.... 97 | Last mile handset customisation... 98 | Service integration.... 98 | Testing and quality assurance.... 99 | Distribution, warehousing and logistics... 99 | Retailing.... 100 | Customer support, reverse logistics, warranty and repairs.. 100
F.2 | Routes to market for uniquely customised handsets... 101 ARCchart Research
| 1. The Customised Design Manufacturer (CDM) route... 102 | 2. The Value-Adding Distributors (VAD) route... 102 | Technology as a catalyst to handset commercialisation... 102
Reference designs.... 102 Operating systems.... 103 Application environments.... 103 User interface frameworks.... 103 On-device portals.... 103 F.3 | Industrial Design: First step of the experience... 104
| The business dynamics of industrial design... 104

Limited differentiation and margin pressures... 104 Towards closer integration of industrial design with manufacturing.. 105 No Picnic.... 105 Frog design.... 105 Lawton & Yeo.... 106 The benefits of independent industrial design firms... 106
| The Industrial Design process... 106 | Idem..... 110
Services..... 110 Positioning and customers.... 110 Strategy.... 110
| Ocean Observations..... 111
Overview.... 111 Services..... 111 Positioning and customers.... 111 Strategy.... 111
| Case Study: Nordisk Mobiltelefon... 111
Background.... 112 The design of the Nordisk brand... 112 Understanding the Scandinavian rural professionals segment.. 113 Development of the rugged line of handsets... 113 Next phase: targeting the consumer segment... 115 Development of The Networker Line.... 115 Summary.... 115 F.4 | Customised Design Manufacturers.... 116
| CDM: an OEM without fixed costs.... 116
The beginnings and principles of the CDM model.. 116 From modelabs to TCL Alcatel... 116
| CDM challenges.... 117 | Modelabs..... 118
A unique and market leading position... 118 The Elite (modelling agency) and Airness (sport equipment) branded handsets.. 119 Strategy: 10 uniquely designed handsets a year... 120

| Tedemis.... 120

Licensing and on-device portal services... 120 A branded services provider strategy... 120

| Emblaze Mobile.... 121

A handset customisation house for operators... 121 A three-stage strategy from an ODM to a CDM model.. 121 A service-centric strategy targeted to operators... 122 F.5 | Value-Added Distributors.... 122
| Challenges for value added distributors... 122 | Emporia Telecom..... 123
EmporiaLife: A handset for the 50+ age group.. 123
| Dangaard Telecom.... 124 | Brightpoint.... 125
Brightpoints business model... 125 F.6 | Handset commercialisation: 2006-2011... 126
CHAPTER G. A Guide to Technologies for Handset Customisation G.1 | The Handset technology stack... 128
| Technology as a catalyst to handset customisation... 128
The software stack.... 130 On-device portals.... 130 User interface frameworks.... 130 Application environments.... 130 Operating systems... 130 Reference designs.... 131 Casing..... 131 G.2 | On-Device Portals.... 131
| ODP, the evolution of WAP... 132 | A crowded vendor landscape.... 133

Nokia Content Discoverer... 133 Market forecast to 2009.... 134 G.3 | UI Customisation Platforms... 135
| Who needs UI customisation?... 135 | Vendors and Technologies... 136
Vendor landscape.... 136 Technology and tools.... 136 Criteria for UI vendor selection... 137

| TAT.... 138

Background and overview... 138 Positioning and unique selling points... 138 Products..... 130
The New Age of Handset Customisation: 2006-2011 Customers and deployments... 140 Technology.... 140 Strategy.... 140
| Digital Airways.... 141
Background and overview... 141 Positioning and unique selling points... 141 Products..... 141 Customers and deployments... 142 Technology.... 143 Strategy.... 143

| e-SIM..... 143

Background and overview... 143 Positioning and unique selling points... 144 Products..... 144 Customers and deployments... 145 Technology.... 145 Strategy.... 145

| MSX..... 146

Background and overview... 146 Positioning and unique selling points... 146 Products..... 146 Customers.... 147 Technology.... 148 Strategy.... 148
| High-end Handset UI Platforms... 149
Nokia S60.... 149 Trolltech Qtopia.... 149 G.4 | Application Environments.... 149
| Beyond Java and browsers... 149
Java, a point solution.... 150
| Application environments: the new operating system... 151
Decomposing the browser as an application environment.. 151 The war of application environments?... 152
| Adobe Flash Lite.... 152 | Openwave MIDAS.... 153 | Obigo..... 154 | SKY MobileMedia.... 154
SKY-MAP middleware platform... 154 Customers and partnerships.... 155

| Open Plug.... 155

Product proposition, customers and partners... 155 G.5 | Operating Systems.... 156
| Symbian.... 157 | Microsoft..... 157
| SavaJe.... 157 | Linux: quickly gaining market share, but challenges remain... 158
Challenges for Linux vendors today... 158

| Purple Labs.... 158

G.6 | Hardware reference designs.... 159 Reference design form factor: crucial to handset customisation.. 160 G.7 | Casing: new materials for mass customisation... 161 Handset customisation beyond plastics.... 161

| Inclosia.... 161

Overview.... 161 Positioning and revenue model... 162 Products..... 162 Customers.... 162

| SkinIt..... 163

History..... 163 Product and positioning.... 164 G.8 | Handset customisation technology: 2006-2011... 164
CHAPTER H. 2006-2011: Market Forecasts and Trends H.1 | Global market forecast 2006-2011.... 166
| Forecast model.... 166 | Market forecast 2006-20011.... 167

H.2 | Market trends in handset customisation... 170
| Brand-led handset customisation.... 171 | Uniquely customised handsets at the core of the MNO strategy... 172
Own-brand handsets.... 172 Co-branded handsets.... 172 Wholesale.... 172
| The rise of Customised Design Manufacturers... 173 | Verticalisation in handset services and technology.. 174
Verticalisation in the service business... 174 Verticalisation in the technology business... 174
| Handset System Integrators.... 176 | Mass customisation: micro-segmentation... 177 | Open OSes are out; customisable software stacks are in... 178
The New Age of Handset Customisation: 2006-2011 CHAPTER I. Recommendations For Industry Players
| Recommendations for mobile network operators... 179
Own-brand handsets.... 180 Co-branded handsets.... 180 Wholesale.... 180
| Recommendations for handset manufacturers.. 180 | Recommendations for consumer brands.... 181

List of Figures

Figure 1 Detailed list of uniquely customised handsets and handset series profiled in this report. 9 Figure 2 - Motorolas market segmentation chart identifying main consumer clusters. 12 Figure 3 - BenQ Siemens market segmentation chart circa 2004.. 13 Figure 4 - Roles of manufacturers, by category.... 15 Figure 5 - Global handset production breakdown: in-house vs outsourced.. 15 Figure 6 - The Red Motorola SLVR and Dolce & Gabbana RAZR v3i as examples of superficially customised handsets..... 17 Figure 7 - The Sagem my700X Roland Garros designed for fans of the French Open tournament. 18 Figure 8 - Illustration of the LG SD410 handset whose design resembles a sports car.. 18 Figure 9 - The Nokia Versace 7270, with Swarovski crystal lanyard... 19 Figure 10 - The 3250 WESC Limited Edition handset... 20 Figure 11 - The Casio G-Zone splash-proof phone... 21 Figure 12 - The grey colours and conventional form factors typically found in mass-market handsets. 22 Figure 13 - The Nokia 5500, the first device to offer mode shifting... 23 Figure 14 - A music phone design by FG Wireless... 27 Figure 15 - The Philips 968 Linux-based high-end handset designed by Cellon.. 28 Figure 16 - Xelibri models 1 through 8... 31 Figure 17 - The Siemens ESCADA range... 34 Figure 18 - The Bang & Olufsen Serene handset... 37 Figure 19 - The ELLE Glamphone No 1 phone (top) and No 2 phone (bottom)... 39 Figure 20 - The i-kids uniquely customised handset targeting the tweens segment.. 41 ARCchart Research
Figure 21 - Selected handsets from Vertus Signature range (left) and Ascent range (right). 42 Figure 22 - The Goldvish diamond-encrusted handset... 45 Figure 23 - The VIPN Black Diamond designed by Jaren Goh... 45 Figure 24 - Vodafones handset menu icons.... 50 Figure 25 - Orange Downloads service.... 51 Figure 26 - Vodafone Live Cast screenshots... 51 Figure 27 - T-Mobiles market segmentation charting segments by life stage.. 53 Figure 28 - The Firefly uniquely customised handset for 8-12 year old children.. 57 Figure 29 - LG and Pantech handsets customised for Disney Mobile... 59 Figure 30 - Disney-branded fixed, cordless and mobile handsets, manufactured through brand licensing agreements..... 59 Figure 31 - Limited edition of Dmobo M900 with numbered certificate and rag cleaner.. 60 Figure 32 - The Hero and Kickflip handsets launched by MVNO Helio.. 61 Figure 33 - The Ampd Jet, Hollywood and Angel handsets... 62 Figure 34 - The Sanyo MVP and the Samsung ACE customised Mobile ESPN handsets.. 65 Figure 35 - Leather-embossed Motorola RAZR v3 handsets available exclusively to Voce customers. 67 Figure 36 - The A120 phone models designed and built by Samsung, based on Jitterbugs conceptual model.... 68 Figure 37 - The Vodafone Ferrari Sharp 902 handset... 71 Figure 38 - The Sony Ericsson W300 Robbie Williams handset, exclusive to T-Mobile.. 72 Figure 39 - Vodafone investment in handset user interface, core applications and middleware. 73 Figure 40 - KDDI Designer handsets.... 74 Figure 41 - The DoCoMo Music Porter X army-style handset from Mitsubishi.. 75 Figure 42. Dedicated single-task buttons as part of the Simply user interface (VS1 handset model). 76 Figure 43 - Handset retail margins of selected Tier-1 manufacturer handsets.. 88 Figure 44 - The 12 stages in the lifecycle of handset commercialisation.. 95 Figure 45 - The stages in the lifecycle of handset commercialisation and industry roles alongside the lifecycle.... 101

Figure 46 - Example of the stages of the handset industrial design process.. 107 Figure 47 - A dissection of the industrial design of the NMT handset, showing the complex arrangement of materials.... 108 Figure 48 - The Nordisk MobilTelefon logo.... 113 Figure 49 - The industrial design for the rugged handset developed by Ocean Observations.. 114 Figure 50 - Screenshots of the user interface designed for the NMT handsets.. 115 Figure 51 modelabs customisable handset features for project delivery within six months. 118 Figure 52 - The Elite Model Look EML1 handset powered by modelabs.. 119 Figure 53 - The EmporiaLife handset designed for the 50+ age group.. 124 Figure 54 - Simplified handset technology stack showing core software platforms that enable handset customisation.... 128 Figure 55 - Positioning of on-device portals within the handset technology stack. 131 Figure 56 - Examples of immersive data service experiences delivered by commercial on-device portal products..... 133 Figure 57 - Positioning of UI customisation platforms within the handset technology stack. 134 Figure 58 - Examples of customisable user interfaces delivered by TATs product.. 138 Figure 59 - Example of a customisable user interface delivered by Digital Airways product. 141 Figure 60 - Examples of customisable user interfaces delivered by e-SIMs product. 143 Figure 61 - Examples of customisable user interfaces delivered by MSXs product.. 146 Figure 62 - Positioning of application environments within the handset technology stack. 150 Figure 63 - Positioning of operating systems within the handset technology stack.. 155 Figure 64 - Positioning of hardware reference designs within the handset technology stack. 158 Figure 65 - Evolution of reference design hardware and integration of functionality into fewer chips. 159 Figure 66 - The Dmobo M900 and the Philips Xenium 9@9 handset featuring leather-moulded housing by Inclosia.... 162 Figure 67 - Branded vinyl skins produced by SkinIt, themed around a licensed Star Wars character. 163 Figure 68 - Unit sales of uniquely customised handsets by manufacturer type: 2006-2011. 167 Figure 69 - UCH sales as a percentage of global handset sales: 2006-2011.. 168

Figure 70 - UCH sales as a percentage of global handset sales: 2006-2011.. 168 Figure 71 - The handset industry shift from vertical to horizontal forms, modelled on Charles Fines Double Helix.... 173
The New Age of Handset Customisation: 2006-2010

Preface

REPORT ORGANISATION, COMPANIES REVIEWED AND INTERVIEWED
| Organisation of the Report
This research report is structured around nine chapters: Chapter A: The Quiet Revolution A flashback into the history of handset customisation and a fast forward into the proliferation of uniquely customised handsets Chapter B: The Market Today The status of manufacturer, mobile operator and brand activities and the market for uniquely customised handsets Chapter C: Manufacturers: Disruptive Times In the Age Of Micro-Segmentation Manufacturer strategies and case studies in handset customisation from skinning to total redesign Chapter D: Operators & MVNOs: Time For Handset Innovation The ageing state of operator handset customisation and case studies of the novel MVNO approach to market segmentation through handset innovation Chapter E: Consumer Brands: The New Force In Mobile Handsets Routes to market, incentives and challenges for brands entering the handset customisation market. Chapter F: The Silk Road of Customised Handsets The arduous path of handset commercialisation, from brand licensing and industrial design to distribution and the retail experience Chapter G: A Guide To Technologies For Handset Customisation The technology vendor ecosystem, from user interface and plastics customisation to operating systems and reference designs
The New Age of Handset Customisation: 2006-2010 Chapter H: 2006-2011: Market Forecasts And Trends The growth of uniquely customised handsets and the trends that will shape the handset customisation market Chapter I: Recommendations for Industry Players Strategic insights for mobile operators, manufacturers and brands charting their course in handset customisation and segmentation
| Companies and Products Reviewed
Over 45 companies and products related to device customisation are reviewed in this report, as listed below. The depth of each review varies according to the relevance of the company or product to device customisation, ranging from a brief overview of the company positioning, to extensive 3-page reviews of company background, positioning, products, customers, technology and strategy.
Adobe Flash Lite Ampd Mobile Bang & Olufsen Serene Brightpoint Cellon Dangaard Telecom Digital Airways Disney Mobile Dmobo M900 ELLE Glamphone Emblaze Mobile Emporia Telecom ESCADA e-SIM FG Wireless Goldvish Firefly Frog design Helio HTC Idem Inclosia i-kids Microsoft Mobile ESPN modelabs MSX Nokia Content Discoverer Nokia S60 Nordisk Mobiltelefon Obigo Ocean Observations Openwave MIDAS Open Plug Purple Labs SavaJe SkinIt SKY Mobile Media Symbian TAT Trolltech Qtopia UI Evolution Vertu Xelibri Voce Vodafone Ferrari Vodafone Simply

| Methodology and interviews
Interviews with over 30 companies were conducted for this report see list below. Primary research included analysing information collected from company publications, media coverage and details obtained through numerous discussions with industry insiders.
Bang and Olufsen Brightpoint Cellon Dangaard Telecom Digital Airways Emblaze Mobile e-SIM ESPN FG Wireless Firefly Geniem Idem Inclosia Microsoft modelabs MSX Nokia Ocean Observations Open Plug Purple Labs SkinIt SKY Mobile Media Sonopia Symbian TAT TCL Alcatel Tedemis Texas Instruments T-Mobile UIEvolution Virgin Mobile (US)