Driven by consumer demand for low cost handsets and the need for some degree of customization, a new ABI study projects the global sales of private branded handsets to grow by 23% this year and reach $10.7 billion.

In the past, private branded handsets have mostly been high-end feature phones and smartphones supplied to operators by the likes of HTC, Sharp, and Quanta. Now, however, the growing demand for low-cost and ultra-low-cost handsets means that operators also have opportunities to provide private branded handsets in this segment. They can partner with selected local manufacturers who will be able to address the low-cost market by avoiding import costs and benefiting from the skill sets and cheap labor of indigenous work forces.

In addition to having handsets from leading vendors such as Nokia and Motorola in their portfolios, operators are looking for opportunities to forge partnerships with these local manufacturers, who are also more willing to accept operators' customization and branding needs.

Via ABI Research