Dubai - GN today announced that after publishing its quarterly results, GN has now taken over the position as the world's largest manufacturer of headsets in terms of revenue. The entire revenue in GN's headset divisions has in the third quarter of 2005 reached DKK one billion for the first time, the exact figure amounting to DKK 1079 million (approximately 180 million USD) .
The headset divisions, GN Mobile and GN Netcom, now operate in over 30 countries, and sell products in more than 80 countries worldwide through 80.000 retail outlets. From being a niche product to being indispensable in call centres, headsets are rapidly becoming standard equipment for stationary phones and mobile phones at offices and in homes all over the world. On the global consumer market for headsets, GN Mobile is currently generating annual growth rates estimated at more than 50 per cent a year. And on the office market through GN Netcom, GN is currently generating annual growth rates of more than 25 per cent.
- Today we have proved that a Danish company can be the market leader on a market that requires innovation and competitive prices. We have only our employees to thank for the fact that we are now market leading in a growth market, says J?rn Kildegaard, President and CEO, GN.
Danish innovation - Chinese productionThe groundwork for this position was laid with a series of acquisitions made in the 1990s and in 2000 when GN fortified its position as a clear number two on the world market, by then dominated by two companies. GN launched the world's first mobile Bluetooth headset, one of the very few Bluetooth products to see the light of day in 2002. Through a dedicated effort, GN has taken only a few years to become the leading manufacturer of mobile headsets through its GN Mobile Jabra brand and sales to OEM customers. Today, the range also comprises office headsets. To begin with, wireless products accounted for a fairly small part of the global headset market: In 2001 only 15 percent of GN's entire headset revenue. In the three first quarters of 2005 this figure has reached 66 per cent, and for this quarter the figure amounts to 72 percent.
Functionality and technical complexity of a headset is constantly increasing. At the same time, customers require smaller and more aesthetically appealing products. Therefore, GN is currently recruiting for its development department in Copenhagen. Recently, an extra development facility has been opened in Aalborg. All GN's headsets are today being manufactured in China. In 2005 GN expects to produce 25 million headsets, amplifiers and other devices in China. 20 per cent of these units are manufactured at GN's factory in Xiamen, the rest are manufactured by subcontractors. GN estimates a revenue for the entire headset business of DKK 3.5 billion (approximately 575 million USD) in 2005. Due to the Chinese production, GN has the lowest unit costs in the industry.
New markets for headsetsThe market and the demands for headset are rapidly changing due to enormous growth in IP-telephony, computer games, MP3 players and other digital units. More and more consumers wish to use their headsets in connection with these devices.
GN's headset divisions have several times overtaken the competitors in terms of outstanding innovation. The latest example is the world's first Bluetooth 2.0 headset. Parallel to this development, GN's great product design is being refined. GN Mobile's range of Jabra products, several of which are worn behind the ear, have achieved international acclaim and numerous industry awards, including the Red Dot and IF Design Awards. GN Netcom's range of mobile headsets for office use, e.g. the GN 9120, has received countless awards for brilliant design, including the IF Design award and 'G-Mark' Good Design award.
According to leading market analysts, the global market for wireless Bluetooth headsets continues to expand in coming years. By the end of 2010, the total number of sold units is expected to reach 182 million units, according to an IMS prognosis from September 2005.
-Ends-
About GN Netcom
GN Netcom is the global innovator in wireless headset technology. Careful attention to the market enables GN Netcom to develop and market a unique and broad portfolio of high-quality wireless and corded headsets as well as related products for fixed line, mobile and IP telephony. GN Netcom constantly innovates, continuously strengthening its position as the first company in the marketplace to apply new technologies, new products and features that improve sound clarity, wearing comfort and durability.
About GN Mobile
GN Mobile is the world's largest producer of mobile Bluetooth headsets and a division of GN Store Nord headquartered in Copenhagen, Denmark. GN Mobile's business activities include both the Jabra brand of products and GN's original equipment manufacturing (OEM) business.
About GN Store Nord
GN Store Nord has been helping people connect since 1869. Initially as a telegraph company and now as a global market leader in personal communications providing increased mobility and quality of life for its users. GN develops and manufactures headsets for hands-free communication, hearing instruments and audiologic diagnostics equipment. GN products are marketed globally. www.gn.com
For more information please contact:
Laura Stadler-Jensen
Public Relations Manager, EMEA
Jabra
GN Mobile A/S
GN Netcom A/S
Tel: 45 72 11 88 66
E-mail: lstadler@jabra.com
Kirsten Campbell-Morris
NettResults Public Relations
PO Box 72587
Dubai, United Arab Emirates
Tel: 971 4 331 1593
Fax: 971 4 331 1562
E-mail: kirsten@NettResults.com
© Press Release 2005
