This kind of title is pretty much a loaded question.  Whether or not the industry meets expectations depends on what you expect from the industry.

Plunkett Research Ltd. lists some statistics that would ring the "good news" bell for many industry residents.

Plunkett states that the industry, globally, is set to nearly double by 2011.  Even in the crowded US marketplace, they estimate that 900 million handsets will be sold in 2008. Taking into consideration that approximately 79% of Americans all ready subscribe to a wireless plan, the business will remain the healthiest of all the consumer tech verticals. 

Much of the global growth will take place in Asia, with India and China taking the lead.  While many would say that this has limited effect on the US market, I would disagree.

A larger consumer base means that many more consumers that the industry needs to satisfy in products and services.  The handsets will continue to evolve with technology and bandwidth, and with them the services offered and the corresponding revenue opportunities.

Portio Research is a UK firm that offers a free factbook on global statistics for the cellular industry.  They have a very extensive article on the progression of SMS, it's continued growth, and the differing opinions on the progress MMS has made.

The Insight Research Corp. sees continued fixed mobile convergence.  In other words, people are dropping their wireline service in favor of using their cellular phones as their primary line.  As such, rates will continue to drop and become more competitive as base services with more revenue being made up with ancilliary services.  These services will continue to become more diverse as carriers strive to differentiate themselves.

The chief thing for any retailer to remember is that as the industry continues to change, retailers must rise to the challenge and keep pace with those changes.  Revenue streams and structures will not be static, so keeping your eye on the ball will be paramount to success.