OYSTER BAY, N.Y.-Advanced handset features will be key to cdma2000 1x and GPRS networks, but the industry must guard against rapid price declines, according to a new report released by Allied Business Intelligence.
As the technologies grow worldwide, replacement handset sales will drive market growth, said ABI. The new devices have more advanced features and sell for a higher price.
“Sustainability is the question, however,” said Edward Rerisi, director of research at ABI. “Margins for 1x and GPRS components will inevitably succumb to increased pricing pressure, so the real burden is placed on the addition of advanced features to continually increase value.”
Color screens, cameras, Bluetooth and high-speed application processors are considered key features, said the report. But mass-market adoption will be the ultimate determination of success, it said.
“The pitfall is if widescale adoption is achieved only through rapid price declines,” said Rerisi, who offered Verizon Wireless’ new camera phone that sells for $150 after rebates as an example. “If these prices continue to erode in order to attract new consumers, it will undo all the benefits of upgrades.”
