Technical Insight
Demand for 3G will aid components growth (Market News)
Increased demand from the new generation of cellular handsets will fuel renewed growth for suppliers of components to handset OEMs, according to a new report from ABI. While recent market conditions have been difficult, long-term growth looks healthy as new subscribers are attracted by the new services on offer, and current subscribers upgrade their handsets. The report predicts the cellular IC market will double from $13.9 billion in 2001 to $26.4 billion in 2006. The improved data services and increased functionality of 3G will push both silicon and GaAs IC manufacturers to higher levels of device integration. However, the delay in implementing 3G means that the development of integrated 3G IC products will also be held up. As a result, the bill of materials for 3G handsets when they do arrive will be higher than for the current generation, with the semiconductor value estimated at 49% more for 3G than 2.5G. "3G/Cellular Integrated Circuits" is available from Allied Business Intelligence see www.alliedworld.com.
