DUSSEDORF, Germany-The average complexity and manufacturing costs of third-generation UMTS handsets have been “substantially reduced” in the past year, according to research from Portelligent Inc.
Portelligent said its analysis of 11 UMTS handsets during the past 18 months shows that UMTS products introduced since the start of 2004 have 25 percent less electronic components than earlier models. Additionally, the average number of high-value ICs in the 2004 products has declined nearly 50 percent, resulting in lower costs of the devices.
“In 2003, detailed product teardown analysis of the electronics bill-of-materials and component technologies painted a bleak picture for UMTS,” said Howard Curtis, vice president of Portelligent. “Given the very high estimated cost-of-goods sold numbers we were finding in the first-generation products, we just didn’t see how the carriers were going to be successful in jump-starting the 3G market. But the second-generation products demonstrate higher levels of system integration and design maturity. On balance, we have gone from downright pessimism concerning the business prospects of UMTS, to a guarded optimism.”
