Wireless Telecommunications Equipment Manufacturing
Companies in this industry produce radio and television broadcast and wireless communications equipment. Major companies include Apple and Cisco (both based in the US); as well as Ericsson (Sweden); Huawei, Oppo, Xiaomi, and ZTE (China); Nokia (Finland); and Samsung (South Korea).
Worldwide, wireless phone and data service subscriptions is expected to reach 5 billion by 2025, which is about three in five people globally. Mobile adoption is slowing as more markets become saturated, but developing regions still hold potential for growth. Of the 400 million new added connections between 2020 and 2025, two-thirds will come from Asia Pacific and Sub-Saharan Africa.
The US wireless telecommunications equipment manufacturing industry includes about 700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $25 billion.
The industry is part of the Telecommunications Equipment Manufacturing sector, which is covered further in a separate industry profile.
Demand is driven by evolving networking technology that enables new applications and services. The profitability of individual companies depends on efficient operations and bringing new products to market quickly. Large companies enjoy economies of scale in purchasing raw materials, components, and manufacturing equipment. Smaller companies can compete effectively by specializing in niche products or components. The US industry is highly concentrated: the 50 largest companies account for about 90% of revenue.
Specialization - Smaller companies compete with industry leaders by developing equipment for new or emerging technologies. For example, the proliferation of internet-connected devices (commonly referred to as the internet of things, or IoT) is creating opportunities for startups to focus on new antenna and satellite designs.
Talented Engineers - Developing telecommunications equipment requires a wide array of technical talent, including systems designers, electrical engineers, and software programmers. Companies compete to attract experienced engineers.
Access to Capital - Companies that perform their own manufacturing and testing require large investments in equipment and facilities.
Companies to Watch:
Apple's iPhone is arguably the most influential design in the consumer wireless market.
Huawei is among the leading developers of 5G networking gear.
Samsung vies with Apple for the top spot among smartphone vendors.
Chinese consumer electronics maker Xiaomi is one of the fastest growing smartphone makers in the world.
Products, Operations & Technology
Major revenue sources include the manufacturing of communications systems which account for about 80% of the industry revenue. The company also manufactures
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms