News
 

Bookmark and Share

(0) 

The number of subscribers to GSM and 3G mobile networks has been rising rapidly in the last few years, which greatly boosted revenues of handset makers as well as network operators. However, as the number of subscribers increases, users demand more affordable phones – both 3G and GSM – which creates certain challenges for manufacturers. 

By mid-2005, the number of 3G subscribers (CDMA2000 1X EV-DO & WCDMA) exceeded 50 million, the high-tech market research firm In-Stat says. The rollout of 3G services has created pressure for carriers to earn cellular data revenue, and has spawned a multitude of cellular devices of every shape and size, and with almost every feature possible.

But with the trend towards more affordable phones, makers of handsets are facing pressure from each other. Particularly, a report from In-Stat has found the following: 

  • Price pressures are accelerating. GSM handsets have hit the $30 level, and the push is on for $20. WCDMA handsets, most of which also support GSM, remain expensive, but prices are dropping fast.
  • Chip counts are dropping. Although both Intel and TI have long talked about their visions for a “one-chip” handset, now all chipmakers see the need to get handset chip counts down as fast as possible, especially for low-end handsets.
  • Memory is growing greatly. Handsets are being made with larger and larger sections of flash memory, and some handsets have removable memory cards. Cellular carriers realize that subscribers won’t buy songs and applications if they have no place to store them on their handsets.

“3G networks have made 2005 an exciting time for subscribers and a trying time for handset and component makers,” says Allen Nogee, In-Stat analyst. “Carriers have spent billions to get their data networks off the ground; they have become desperate to start getting some payback”.

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month