Connect with us

Hi, what are you looking for?

New Products

More Mobile Phones Under $50 Coming Next Year

More Than a Dozen Vendors Will Be Shipping Sub-$50 Handsets by 2008, Says ABI Research

More than a dozen handset vendors will be shipping sub-$50 models by 2008. The ultra low cost handset marketplace is currently dominated by Motorola and Nokia, but Samsung, LG, and Sony Ericsson are showing increasing interest and other smaller vendors including ZTE, Kyocera, Huawei, Haier, Sagem, Ningbo Bird, Philips, and Rose Telecom are also beginning to address the market.

According to ABI Research industry analyst Shailendra Pandey, “Having a good IP portfolio is a big advantage for the likes of Motorola and Nokia, but other smaller handset vendors will also be able to address the low margin ULCH market by cutting costs through manufacturing locally in emerging markets. They can also save on marketing and distribution costs by forming partnerships with mobile operators.”

A good IP portfolio means lower or no royalty fees, as vendors can benefit from cross-licensing agreements. Smaller vendors and new market entrants without significant patents have to pay high royalty fees for the licenses. This makes it more difficult for smaller vendors to address the ULCH market, which offers very low margins.

Therefore these vendors are addressing the market by forming exclusive handset deals with operators, allowing them to save substantial marketing and distribution costs. For example, ZTE and Rose Telecom have been providing ultra low cost handsets to Reliance Communications, the largest CDMA operator in India. Huawei is providing low-cost CDMA handsets to China Unicom and ZTE, and also has agreements with Vodafone for providing low cost handsets.

ABI Research expects that by 2011, almost one out of every four handsets shipped globally will be an ultra low cost handset. The research shows that India will be the biggest market in the next five years, growing from a little over 9 million handsets in 2006 to more than 116 million handsets in 2011.

ABI Research’s study, Ultra Low Cost Handsets examines the historical and current market for ultra low cost handsets and evaluates its long term growth potential. It discusses the driving forces, market barriers, the competitive business environment, and the handset vendors, semiconductor manufacturers, and mobile operators addressing this market.

This study forms part of two ABI Research services: Mobile Devices and Wireless Handset Semiconductors, which include a variety of Research Reports, Research Briefs, Market Data, Online Databases, ABI Insights and analyst inquiry support.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services, and market reports in broadband and multimedia, RFID and M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information, visit http://www.abiresearch.com, or call +1.516.624.2500.

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Latest Products

BenQ W4100i 4K Projector Ceiling Mounted

New Products

Experience cinematic 4K HDR at home with the $2,999 BenQ W4100i 4LED projector featuring AI Cinema Mode, deep blacks, 3D support, and smart streaming.

Pro-Ject Balanced Turntable System with Tube Box S3 B Phono stage and Uni Box S3 Integrated Amplifier Pro-Ject Balanced Turntable System with Tube Box S3 B Phono stage and Uni Box S3 Integrated Amplifier

New Products

Pro-Ject’s new tube based phono preamps support both MM and MC cartridges for top-tier analog performance with a balanced option.

FiiO M27 DAP FiiO M27 DAP

DAPs

FiiO M27 DAP combines flagship DACs, FPGA architecture, 5W balanced output, and hi-res audio. Full specs and pricing set for September.

Samsung Galaxy Buds3 Fe in gray and black Samsung Galaxy Buds3 Fe in gray and black

Earbuds & In-Ear Headphones

Samsung Galaxy Buds3 FE are smart ANC wireless earbuds with deep bass, clear treble, AI translation, and hands-free controls for Galaxy users.

Sony INZONE H9 II Wireless Gaming Headset and E9 Wired IEM Sony INZONE H9 II Wireless Gaming Headset and E9 Wired IEM

New Products

Sony expands its INZONE lineup with the H9 II Wireless Gaming Headset and E9 IEMs, featuring FNATIC tuning, 360 Spatial Sound, and pro-level gaming...

Epson AirPlay Projectors 2025 Epson AirPlay Projectors 2025

New Products

Four new Epson lamp-based 3LCD projectors feature high-brightness and versatile connectivity for under a grand.

Gift Ideas?

Amazon Prime Day is July 8-11, 2025

Daily Deals

Amazon Prime Day is a four-day shopping event from July 8-11, 2025 offering the biggest discounts of the year on consumer electronics.

You May Also Like

Advertisement

ecoustics is a hi-fi and music magazine offering product reviews, podcasts, news and advice for aspiring audiophiles, home theater enthusiasts and headphone hipsters. Read more

Copyright © 1999-2024 ecoustics | Disclaimer: We may earn a commission when you buy through links on our site.



SVS Bluesound PSB Speakers NAD Cambridge Audio Q Acoustics Denon Marantz Focal Naim Audio RSL Speakers