WLAN making more inroads in the handset market
According to new a research report from the analyst firm Berg Insight, WLAN will become the next prevalent connectivity technology in mass-market mobile handsets. The number of handsets with integrated WLAN is forecasted to grow from 27 million in 2007 at a compound annual growth rate (CAGR) of 71.5% to 400 million in 2012, corresponding to an attach rate of 25%. WLAN will primarily be used for high-speed Internet access in home or office networks and file transfer of for instance photos and media libraries. Mobile operators no longer consider WLAN a threat against data revenues, said André Malm, telecom analyst, Berg Insight. As flat-rate plans for data access become the norm, encouraging subscribers to use a local Internet connection actually makes much sense as a way to prevent data overload in mobile networks, Malm explained.
ABI Research has also produced research in this area that explains another reason why WLAN (Wi-Fi) is gaining market penetration in the handset industry – cost. In its short-range wireless communications forecast ABI senior analyst Doug McEuen pointed out that the handset industry is very cost-sensitive so if you're a radio or IC manufacturer and your unit price is above US$2.00, you're going to have trouble getting your product into a handset, and that is definitely one of the reasons why Wi-Fi has seen slower adoption in that market.
However, McEuen explained that IC prices continue to fall due to technology evolution and greater IC production efficiency. Wi-Fi chipsets have been very expensive for a long time, but as the attach rate, particularly in notebooks, increases to 100%, production is growing rapidly and prices are falling. In addition, because the notebook market is reaching saturation, Wi-Fi needs to find new opportunities, especially in the handset industry, he added.
For other connectivity technologies, such as NFC and UWB, Berg Insight has a more cautious outlook for the adoption in handsets. The number of handsets with integrated NFC or FeliCa is forecasted to grow from 35 million in 2007 at a CAGR of 43.8% to 215 million in 2012, corresponding to an attach rate of 13%. UWB is not expected to appear in significant volumes before 2010 and only be featured in 1% of the handsets shipped in 2012. Berg Insight recognizes a significant potential for both technologies but believes that neither of them have yet become widespread enough to motivate integration in high-volume handsets. NFC is closest to achieving a breakthrough, which could be achieved as early as 2010 or 2011.
While the aforementioned technologies are increasing their penetration rates in the handset market, ABI noted that Bluetooth, which already has great penetration in the handset world and has price points that are very low, is extending its range of applications to other industries as the technology evolves toward higher speeds and greater capabilities. ABI's McEuen indicated that Bluetooth's prevalence in wireless handset/headset combinations is being supplemented by greater penetration in MP3 players and other portable media devices. The technology is also making inroads in the automotive industry.
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ABI Research has also produced research in this area that explains another reason why WLAN (Wi-Fi) is gaining market penetration in the handset industry – cost. In its short-range wireless communications forecast ABI senior analyst Doug McEuen pointed out that the handset industry is very cost-sensitive so if you're a radio or IC manufacturer and your unit price is above US$2.00, you're going to have trouble getting your product into a handset, and that is definitely one of the reasons why Wi-Fi has seen slower adoption in that market.
However, McEuen explained that IC prices continue to fall due to technology evolution and greater IC production efficiency. Wi-Fi chipsets have been very expensive for a long time, but as the attach rate, particularly in notebooks, increases to 100%, production is growing rapidly and prices are falling. In addition, because the notebook market is reaching saturation, Wi-Fi needs to find new opportunities, especially in the handset industry, he added.
For other connectivity technologies, such as NFC and UWB, Berg Insight has a more cautious outlook for the adoption in handsets. The number of handsets with integrated NFC or FeliCa is forecasted to grow from 35 million in 2007 at a CAGR of 43.8% to 215 million in 2012, corresponding to an attach rate of 13%. UWB is not expected to appear in significant volumes before 2010 and only be featured in 1% of the handsets shipped in 2012. Berg Insight recognizes a significant potential for both technologies but believes that neither of them have yet become widespread enough to motivate integration in high-volume handsets. NFC is closest to achieving a breakthrough, which could be achieved as early as 2010 or 2011.
While the aforementioned technologies are increasing their penetration rates in the handset market, ABI noted that Bluetooth, which already has great penetration in the handset world and has price points that are very low, is extending its range of applications to other industries as the technology evolves toward higher speeds and greater capabilities. ABI's McEuen indicated that Bluetooth's prevalence in wireless handset/headset combinations is being supplemented by greater penetration in MP3 players and other portable media devices. The technology is also making inroads in the automotive industry.
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