@CTIA: Qualcomm aims to help spur growth in 'emerging devices' segment

LAS VEGAS–Qualcomm Inc. is focusing on creating new product categories as wireless connectivity becomes a key component of other consumer electronics devices, said Bill Davidson, senior VP of global marketing at the chip company. In a wide-ranging interview, Davidson commented on emerging devices, its BREW and FLO platforms and new business models associated with new devices.
As Korea, Japan and the United States reach 100% penetration levels, Qualcomm is helping to expand the addressable market with new product categories. “We look at you and see five chips being used,” Davidson said. Electronic readers and smart books will continue to gain popularity, and likely there is room in the marketplace for both. Whether people will want to read a book on a smartbook and carry only one device remains to be seen, he said. A variety of business models will be implemented including ones like Amazon’s Kindle e-reader, where the transport costs are included in the initial device price and subscription services for some products. For example, Qualcomm has said it expects its FLO mobile TV technology to be incorporated into consumer-facing devices in the future. Carriers don’t want to carry a lot of high-bandwidth data applications like video that can constrain the network.
While smartphones and smart books are gaining traction, the mid-tier feature phone sector has collapsed a bit, Davidson noted. Qualcomm is hoping its BREW platform will stimulate some uptick in that market segment. AT&T Mobility and Sprint Nextel Corp. have announced plans to incorporate BREW into their feature phones. For further proof of that phenomenon, AT&T Mobility at its annual press and analyst lunch at CTIA Wireless 2010 announced plans to bring more functionality to mid-tier handsets that it is calling quick messaging devices.