Grey Handsets: Market Analysis and Forecasts


June 1, 2012
50 Pages - SKU: CCEQ4862841
License type:
Table of Contents Related Reports
Countries covered: Global

Grey handsets are not recognized or licensed by government regulators and employ fake International Mobile Equipment Identity (IMEI) numbers. Producers of these devices generally do not pay value-added taxes and, therefore, profit illegally from their participation in the market.

This report provides a global assessment of the grey handset ecosystem, in addition to considering the wider legitimate handset industry. A study of the industry’s history, value chain and market dynamics is presented. The report also provides detailed market forecasts for grey and legitimate handset shipments from 2012 to 2016, at a global, regional and country level. Historical figures for 2010 and 2011 are also provided.

Driven by a growing popularity amongst cost-conscious consumers demanding high-end features at affordable prices, ARCchart expects the grey market will continue to grow over the next two years, eventually peaking in 2013, with nearly 150 million shipments. In conjunction with legitimate handset shipments, we expect grey handset shipments will witness a decline from 2013 onwards.

Topics of coverage include:
  • History of grey handsets
  • Industry dynamics
  • Grey handset value chain
  • Competitive advantages over legitimate handsets
  • Emerging trends
  • Grey smartphones
  • Health and safety concerns
  • Innovation and innovate products
  • Regulator attempts to curtail the market
  • Companies and organisations mentioned, discussed or reviewed include:
  • Apple
  • CK Telecom
  • HTC
  • Longcheer
  • Longyu
  • MediaTek
  • Motorola
  • Nokia
  • Qualcomm
  • Samsung
  • SIMCom
  • Spreadtrum
  • Texas Instruments
  • Tianyu (K-touch)
  • Wingtech
Answers and opinions are provided with respect to the following essential questions:
  • When will the grey handset market peak?
  • What are the factors driving the grey market?
  • How are grey manufacturers able to evade authorities?
  • Will Europe and North America see much grey handset penetration?
  • What proportion of the overall handset market will be grey?
  • Which country will be the largest market for grey devices?
  • How will the arrival of LTE impact the grey handset market?
  • What are the factors preventing regulators from a large scale crackdown?
  • Which region will experience the fastest grey handset growth in the coming years?


A. INTRODUCTION
A.1 A History of the Grey Handset Market
The Concept of ‘Shanzhai’
MediaTek’s “Total Solution” Chip
The Rise of Grey Handsets
A.2 Innovation & Innovative Products
A.3 The Grey Handset Value Chain
Chipset Manufacturers
System Integrators aka Grey Manufacturers
Independent Design Houses
Component/Tool Suppliers
Distribution Channels
A.4 Competitive Advantage over Legitimate OEMs
Marketing & Promotion Advantage
Size Advantage
B. INDUSTRY DYNAMICS AND KEY TRENDS
B.1 Issues Faced by Grey Handsets
Problems with Lawful Interception
Missing or Fake IMEI Number
Consumer Dissatisfaction
Grey Handsets as Counterfeit Originals
Inferior Reliability
Health & Safety Concerns
Lost Revenue Opportunities
Loss of Tax Revenue
Loss of IP Royalties
Loss of Operator Revenue
B.2 Emerging Trends
Penetration into Western Europe and North America
Prospects for LTE Handset
The TD-LTE Advantage
Move to the Market High-end
B.3 Government & Regulatory Crackdown
B.4 Issues Preventing a Large Scale Crackdown
Duplication of IMEI Numbers
Economics
Consumer Apathy
Widespread Adoption of Open OS Platforms
Grey Smartphones
Expanding Geographic Distribution of Facilities
Shrinking Facility Size
C. MARKET SIZE AND FORECASTS
C.1 Grey Handsets Market
When Will the Market Peak?
Regional Breakdown
Top Grey Handset Shipments Countries
Device Breakdown
C.2 North America Market
C.3 Asia Pacific Market
C.4 Western Europe Market
C.5 Middle East & Africa Market
C.6 Eastern Europe Market
C.7 Latin & Central America
List of Figures
Figure 1 – Innovation in the grey handsets industry
Figure 2 – The grey handset value chain
Figure 3 – Survey results of grey handsets health and safety considerations
Figure 4 - Global grey handset shipments: 2010 – 2016
Figure 5 - Global grey handsets and legitimate handset shipments compared: 2010 – 2016
Figure 6 - Global handset market breakdown, by grey and legitimate handset: 2010 – 2016
Figure 7 - Grey handset shipments by region: 2010 – 2016
Figure 8 - Grey handset market share, by region: 2011
Figure 9 - Grey handset market share by region: 2013
Figure 10 - Grey handset market share by region: 2016
Figure 11 - Global grey handset shipments, by top ten countries: 2011
Figure 12 - Global grey handset shipments, by top ten countries: 2016
Figure 13 - Global grey handset shipments, by devices type: 2010 -2016
Figure 14 - Global grey smartphones as a proportion of total smartphone shipments: 2010 – 2016
Figure 15 – North America grey and legitimate handset shipments: 2010 – 2016
Figure 16 – North America grey handset shipments, by country: 2010 – 2016
Figure 17 – Asia Pacific grey and legitimate handset shipments: 2010 – 2016
Figure 18 – Asia Pacific grey handset shipments, by top 5 countries: 2010 – 2016
Figure 19 – Asia Pacific grey handset shipments, by country: 2010 – 2016
Figure 20 – Western Europe grey and legitimate handset shipments: 2010 – 2016
Figure 21 – Western Europe grey handset shipments, by top 5 countries: 2010 – 2016
Figure 22 – Western Europe grey handset shipments, by country: 2010 – 2016
Figure 23 – Middle East & Africa grey and legitimate handset shipments: 2010 – 2016
Figure 24 - Middle East & Africa grey handset shipments, by top 5 countries: 2010 – 2016
Figure 25 - Middle East & Africa grey handset shipments, by country: 2010 – 2016
Figure 26 – Eastern Europe grey and legitimate handset shipments: 2010 – 2016
Figure 27 - Eastern Europe grey handset shipments, by top 5 countries: 2010 – 2016
Figure 28 – Latin & Central America grey and legitimate handset shipments: 2010 – 2016
Figure 29 - Latin & Central America grey handset shipments, by top 5 countries: 2010 – 2016
Figure 30 – Latin & Central America grey handset shipments, by country: 2010 – 2016

More Wireless Company reports by ARCchart

Americas Carrier Mobile Broadband Network Performance. by ARCchart
Carriers are using mobile broadband as their weapon of choice in the fight against the commoditization of voice and falling ARPU. It is therefore imperative ...
Wireless Landscape Wallcharts 2011 by ARCchart
Coverage: 157 European operators; 152 Americas operators; 179 Asian operators; 262 AME & Russian operators ARCchart's Wireless Landscape wallcharts deliver the distinctly unique ...
European Carrier Mobile Broadband Network Performance by ARCchart
Carriers are using mobile broadband as their weapon of choice in the fight against the commoditization of voice and falling ARPU. It is therefore imperative ...
Mobile Patents and Intellectual Property Rights by ARCchart
Patent activity is a good measure of a company’s competitiveness and its ability to protect its long-term profitability. Patents are internationally defendable and ensure that ...
See all reports like this >>

More Global Wireless Company reports

2013 Worldwide Wireless Telecommunications Carriers Industry-Industry & Market Report by Barnes Reports
The 2013 Worldwide Wireless Telecommunications Carriers Industry-Industry & Market Report, published annually by Barnes Reports, contains timely and accurate industry statistics, forecasts and demographics. The ...
Worldwide Mobile Phone Vendor Performance, 4Q 2012 by Market Intelligence & Consulting Institute
The Greater China notebook PC industry's shipment volume dropped 2.9% sequentially in the third quarter of 2012, arriving at approximately 42.5 million units. This is ...
Wireless Telecommunication Services: Global Industry Guide by MarketLine
Wireless Telecommunication Services: Global Industry Guide is an essential resource for top-level data and analysis covering the Wireless Telecommunication Services industry. It includes detailed data ...
1Q12 Global Mobile Operator Forecast, 2012 - 2016 by IE Market Research Corp.
IEMR’s Global Mobile Operator Forecast is the most comprehensive forecast of its kind in the world. Our Global Mobile Operator Forecast provides operational and financial ...
See all reports like this >>

 

Research assistance

We can help you find what you need. Call us or write us:
US: 800.298.5699
Int'l: +1.240.747.3093
Need help in your search?
 

Related Markets


Wireless Company Reports

 
 

Share this report


Other tasks

 
 

Join Alert Me now!

Receive bi-weekly email alerts on new market research

Sign up today!