Ericsson sees faster surge in smartphone use

STOCKHOLM Mon Nov 11, 2013 2:37pm IST

The exterior of Ericsson's headquarters are seen in Stockholm April 30, 2009. REUTERS/Bob Strong/Files

The exterior of Ericsson's headquarters are seen in Stockholm April 30, 2009.

Credit: Reuters/Bob Strong/Files

Related Topics

Stocks

   

STOCKHOLM (Reuters) - Subscriptions for smartphones globally will rise faster than previously thought, almost tripling by 2019 and forcing operators to roll out high-speed networks to cope with surging data traffic, Ericsson (ERICb.ST) said on Monday.

The world's top mobile network equipment maker said it expected 5.6 billion smartphone subscriptions globally by the end of 2019, up from 1.9 billion in 2013, as more people in emerging markets buy cheap smartphones instead of basic phones.

This will help drive a surge in mobile data traffic by ten times between 2013 and 2019, mostly thanks to video, Ericsson said. It expected monthly smartphone traffic would reach 10 exabytes by 2019, or one billion billion bytes.

In its previous biannual report on global telecoms trends, released in June, Ericsson forecast 4.5 billion smartphone subscriptions by the end of 2018. In Monday's report, that figure was raised to 5.1 billion.

"We have added not just another year, but we have also taken into account what we see in the market and what we see in different regions as a further uptake of smartphones," Ericsson's strategy chief, Douglas Gilstrap, told Reuters in a telephone interview.

He said smartphones would become more affordable while infrastructure build outs in Asia Pacific, the Middle East and Africa would help drive usage.

More than a quarter of a billion smartphones shipped in the third quarter, according to Strategy Analytics, an increase of 45 percent from the same quarter last year. Samsung (005930.KS) made 35.2 percent of those and Apple (AAPL.O) 13.4 percent.

To meet the higher pressure on telecom networks as data traffic surges, operators will expand high-capacity 4G, or LTE, to cover more than 65 percent of the world's population by 2019, up from around 10 percent in 2012, Ericsson said.

It said 55 percent of all mobile phones sold in the third quarter were smartphones and expected that in 2016 the total number of smartphone subscriptions would overtake basic phone subscriptions. (Reporting by Sven Nordenstam)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

AMAZON

TECH SHOWCASE

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Right to be Forgotten

Right to be Forgotten

Google under fire from regulators over response to EU privacy ruling.  Full Article 

Record Smartphone Sales

Record Sales

LG Electronics flags further mobile improvement after Q2 profit jump.  Full Article 

Smartwatch

Smartwatch

Swatch Group denies working with Apple on smartwatch.  Full Article 

Strong Results

Strong Results

Nokia's fortunes brighten on heavy network spending.  Full Article 

Battle of Giants

Battle of Giants

In China, Apple's focus pays off while Samsung feels squeeze.  Full Article 

Anonymity Services

Anonymity Services

Flaws could expose users of privacy-protecting software, researchers say.  Full Article 

Biggest Chipmaker

Biggest Chipmaker

China regulator determines Qualcomm has monopoly - state-run newspaper.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage