ch sales will have grown from 1.1 billion units per year to 1.7 billion units per year and project that forward to take a view on how the supply chain will look in the future. All those unit sales suggest a lot of people have mobile phones and that a lot of people have multiple mobile phones which explains why many countries, Finland being one example, have penetration rates significantly higher than 100%. Figures 4.3 and 4.4 below also show the mix of devices split as ordinary phones, iPhones and other smart phones, iPAD and similar tablet form factor devices and lap top devices. Making Telecoms Work: From Technical Innovation to Commercial Success, First Edition. Geoff Varrall. © 2012 John Wiley & Sons, Ltd. Published 2012 by John Wiley & Sons, Ltd. Making Telecoms Work Fixed Mobile Figure 4.1 Global connections, 1990 to 2010. Reproduced with permission of The Mobile World. The iPhone launched in 2007 still has a relatively small global market share but spawned a new product sector of enhanced functionality smart phones. This has had a major impact on service revenues and service and delivery costs. The launch of the iPad in 2010 appears to be creating another new sector that will likely have a similarly transformative impact that should be positive, provided delivery and support cost can be rigorously controlled. A topic to which we return on several occasions. The trend clearly shows ordinary phones becoming a smaller part of the mix. Given that much of the volume growth is from developing economies with low GDP relative to developed economies this might seem surprising. It probably shouldn't be. People in Table 4.1 Industry supply chain Materials Baseband innovation vendors Process RF IC innovation vendors Packaging Device Network Service Innovation component manufacturers Operators providers users vendors Manufacturing Display and innovation peripheral component vendors Algorithmic Software innovation vendors Telecommunications Economies of Scale Mobile Device Sales (Ms) Figure 4.2 Mobile device sales, 2003