BOSTON-Rapid product development among semiconductor players could pave the way for nearly 50 million ultra low cost handset shipments by the end of next year, according to a new report from research firm Strategy Analytics Inc.
“In addition to Texas Instruments and Infineon, other chipmakers, including Freescale, Qualcomm and Philips, have rapidly made single chip solutions available,” said Chris Ambrosio, director of the wireless device strategies service at Strategy Analytics. “These new products will meet the dual needs of driving new subscriber growth in emerging markets and creating a stronger profit opportunity in entry-tier segments for small handset vendors.”
The report found Motorola Inc. continues to be the leader in the segment with an 80-percent share of ULCH shipments. The report also predicts that color, FM radio and speaker phone capability will be common features on ULCH devices by 2011.
“While current interest from operators appears quite low, push-to-talk could potentially be one of the applications to drive subscriber growth in the medium term. This solution would arguably have a higher value, even in 2.5G flavors, to ULCH user segments,” said Bonny Joy, an analyst in the Wireless Device Strategies Service.
As wireless penetration in developed countries continues toward a saturation point, handset manufacturers increasingly are looking to less-developed countries to ply their wares. Handset makers are trying developing phones at price points under $40 and even under $25.
