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TECH SUPPLIER May 2019 - Market Forecast - Doc # US45031819

U.S. Mobile Network Operator Wireless Equipment Revenue Forecast, 2019–2023

By: Jason LeighResearch Manager, Mobility

Abstract

This IDC study analyzes the U.S. wireless equipment revenue market outlook for mobile network operators from 2019 to 2023. Our analysis discusses the key market trends impacting the outlook and examines the key market challenges and competitive dynamics to watch in 2019 and beyond.

"Carriers' equipment revenue bottom line has continued to benefit from strong wireless subscriber growth, the elimination of device subsidy programs, new device types, such as wearables, and the ever-increasing price of flagship smartphones, as well as from recent accounting rule changes that have reallocated some service revenue to the equipment side of the equation," says Jason Leigh, research manager, Mobility at IDC. "And while the launch of 5G connectivity services will provide buoyancy to equipment revenue in the midterm to long term, it may place additional downward pressure on device upgrade rates as it provides a modest disincentive for customers to upgrade until they fall into a 5G coverage footprint."


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