European handset replacement market

In a saturated market, it is vital for vendors to investigate the replacement market. According to Telephia, 25% of European mobile users are replacing their handsets every year, and 60% are replacing their mobile phones within two years. On average, a European purchases a new mobile phone after 25 months, with small variations depending of the countries and habits. Spain and Italy have a faster rate of cell phone replacement than the average with about 23 months; the UK and Sweden are at 24 months; while France and Germany are at 26 months. The breakdown of sales by age is more interesting. The younger, the faster rate: between 15 -17, the rate is 20 months with 40% purchasing a new model within 12 months. Between 35-44, it is of 26 months and above 55, it is 31 months. Telephia demonstrated also a link between contract expirations (12, 24, or 36 month cycles) and the replacement market.