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Phones Driving Chip Sales |
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Written by Adam Gosling
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Thursday, 08 November 2007 |
Total revenue from handset semiconductors will exceed US$31 billion
worldwide this year says research firm In-Stat. While all the news
might be about GPS, HSDPA and WiFi, the researcher says one of the more
popular cell phone features is Bluetooth.
Cellular or mobile phones are one of the largest product categories of
semiconductor consumption in the world, says In-Stat and while the
market can expect growth in the year ahead, falling chipset prices
means that total revenues for the market will only reach US$32.2
Billion by 2012.
"The features that appear in cellular handsets are an interesting mix
of consumer wants, cellular operator revenue opportunities, and
semiconductor manufacturing abilities," says Allen Nogee, In-Stat
analyst.
"If a feature is fairly expensive to produce, a handset
manufacturer may include it in a few high-end models to test the
market. At the other end of the spectrum, some features are so cheap,
such as digital cameras, that cell phone manufacturers include them in
many models at the operator's request. These features enable more
consumers to use more revenue-generating services such sending digital
photos over wireless networks."
While add-on semiconductors, like Bluetooth and GPS, are growing at a
faster rate than core handset components, the average selling price of
core semiconductors in an HSPA handset will drop from $60.72 in 2006 to
$14.61 in 2012, found the researcher.
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