 Ultra Low Cost Handsets
Critical Considerations for Device Manufacturers, Semiconductor Vendors and Mobile Operators
It has been recognized that ULCH (Ultra Low Cost Handsets) are the key to the growth of mobile services in emerging markets. The developed markets’ high saturation rates mean that over 80% of new mobile phone subscribers in the next five years will come from emerging markets. Addressing the ULCH market has become imperative for handset manufacturers, semiconductor vendors and mobile operators if they are to gain market share and maintain stable revenues in the long run. However, it won't be possible for many players meet the desired price points for the ULCH market. This study analyzes and highlights the critical considerations, the major ‘dos and don’ts’, and the key success factors for the ULCH market.
What Does This Report Answer?
- What are the key drivers and the latest trends influencing the market for ULCH (Ultra Low Cost Handsets)?
- What will be the impact of ULCH on the handset market?
- What vendors provide or will provide handsets for the ULCH market and what is their expected market share?
- Which sub-segments will develop within the ULCH market, and why ?
- What are the current and future feature sets that will be seen in the ultra low-cost handset segment?
- What are the critical considerations for handset manufacturers, semiconductor manufacturers and mobile operators in addressing the ULCH market?
- What is the impact of handset royalties on the ULCH market?
- What can be the impact of second-hand and grey market handsets on the ULCH market?
- How will the price points be met for the ULCH market?
- What is the Bill of Materials (BOM) for GSM and CDMA handsets for the ULCH market?
- Will addressing the ULCH market bring financial rewards, and what are the expected margins?
- What price level will Ultra Low Cost handsets reach by 2011?
Who Needs This Report?
- Handset manufacturers/vendors
- Semiconductor vendors
- Mobile operators and MVNOs
- ODMs and OEMs
- Mobile device operating system vendors
- Financial institutions involved with mobile communications
- Venture capitalists and other investors.
Section 1.
Executive Summary
- 1.1 Market Background
- 1.2 Drivers and Barriers
- 1.3 Critical Considerations
- 1.4 Market Forecasts
- 1.5 Key Players
Section 2.
Strategic Recommendations
- 2.1 Strategic Recommendations to Regulators
- 2.2 Strategic Recommendations to Mobile Operators
- 2.3 Strategic Recommendations to Handset Vendors
- 2.4 Strategic Recommendations to Semiconductor Vendors
Section 3.
Ultra Low Cost Handset Market Background
- 3.1 The Ultra Low Cost Handset Origins
- 3.2 The GSMA Involvement in Ultra Low Cost Handsets
- 3.3 The CDMA Reaction to GSMA Ultra Low Cost Handsets
- 3.4 Ultra Low Cost Handset Specifications
- 3.4.1 BOM Analysis
- 3.4.1.1 GSM
- 3.4.1.2 CDMA
- 3.5 What Global Markets?
- 3.6 What do Consumers Want?
- 3.6.1 Feature Sets
- 3.6.2 Price Points
- 3.6.3 Lifetime
- 3.6.4 Status
- 3.7 Segmentation of the ULCH Market
- 3.7.1 Why Segment?
- 3.7.2 Likely Segment differentiators
- 3.7.2.1 Cost
- 3.7.2.2 Feature Set
- 3.7.2.3 Application Support
- 3.8 Market Momentum
Section 4.
Drivers and Barriers
- 4.1 The Importance of Emerging Markets
- 4.1.1 Emerging Market Subscriber Bases
- 4.1.2 Emerging Market Handset Shipments
- 4.2 Financial Profile
- 4.2.1 GDP per Head
- 4.2.2 ARPU
- 4.2.3 Disposable Income
- 4.3 Incentives to Address the ULCH Market
- 4.3.1 Carriers
- 4.3.2 Handset Vendors
- 4.3.3 Semiconductor Vendors
- 4.4 Will Price Points be Met?
- 4.4.1 Reasons For
- 4.4.1.1 Declining Chipset Costs
- 4.4.1.2 Local Manufacturing
- 4.4.1.3 Supportive Government Policies
- 4.4.2 Reasons Against
- 4.4.2.1 High Royalty Fees
- 4.4.2.2 Limited Manufacturing Capabilities
- 4.4.2.3 High Diversity in ULCH Markets
- 4.5 Will Addressing the ULCH Market bring Financial Reward?
- 4.5.1 The Theory
- 4.5.2 The Historical Reality
- 4.5.3 Likely Future Scenarios
- 4.6 Semiconductor Enabling Factors
- 4.6.1 Single Chip Approach
- 4.6.2 High Levels of Integration
- 4.6.3 Manufacturing Process
- 4.7 Service Enabling Factors
- 4.7.1 Tariffs
- 4.7.2 Subsidization
- 4.7.3 Contracts
- 4.8 The Second Hand Market
- 4.9 The Grey Market
- 4.10 Royalty Barriers
- 4.10.1 The Impact of Lack of Portfolio
- 4.10.2 The Impact of License Fees
- 4.10.3 CDMA versus GSM – Royalty Licensing Comparison
- 4.10.4 Limited Handset Supplier Base
Section 5.
Critical Considerations for Addressing Emerging Markets
- 5.1 Royalty Portfolio Strength
- 5.2 Import Tariffs for Components and Devices
- 5.3 Manufacture as Close to Sales Point
- 5.4 Leveraging Indigenous Skill Sets
- 5.5 Logistical Support and Route to Market
- 5.6 Distribution Channels and Channel Management
- 5.7 Manufacturing Methods
- 5.8 Packaging
- 5.9 Accessories
- 5.10 Brand and Portfolio – The importance of Status
- 5.11 Language Support
- 5.12 Longevity and Resale Value
- 5.13 Long Replacement Period and Capturing Brand Loyalty
- 5.14 3G Ultra Low Cost Handsets
Section 6.
Market Forecasts
- 6.1 Methodology
- 6.1.1 Defining Ultra Low Cost Handset
- 6.1.2 Analyzing Global Handset Shipments Trends by Region and Handset Type
- 6.1.3 Forecasting the ULCH Market
- 6.2 Key Market Assumptions
- 6.3 Forecasts by Region and Key Markets
- 6.4 Forecasts by Technology
- 6.5 Forecasts by ULCH Sub-Segment
- 6.6 Forecasts by ASP
- 6.7 ULCH Vendor Market Share
Section 7.
Key Ecosystem Players
- 7.1 Motorola
- 7.2 Nokia
- 7.3 Samsung
- 7.4 BenQ
- 7.5 Philips/NXP Semiconductors
- 7.6 Qualcomm
- 7.7 Infineon
- 7.8 Freescale
- 7.9 Texas Instruments
Section 8.
Company Directory
Section 9.
Acronyms
Scope of Study
Sources and Methodology
Notes
Tables and Charts
- ULCH Shipments as a % of Total Handset Shipments, World Market, 2005 to 2011
- ULCH Shipments by Key Markets, 2006 to 2011
- ULCH Shipments by Technology, World Market, 2006 to 2011
- ULCH Revenue by Technology, World Market, 2005 to 2011
- ULCH Shipments by Handset Type, World Market, 2005 to 2011
- ULCH ASP, World Market, 2005 to 2011
- ULCH ASP by Technology, World Market, 2006 to 2011
- ULCH Vendor Market Share, World Market, 2006
- Handset Shipments by Region, World Market: 2005 to 2011
- Handset Shipments by Technology, World Market: 2005 to 2011
- Handset Shipments by Value Segment, World Market: 2005 to 2011
- Handset ASP by Value Segment, World Market: 2005 to 2011
- ULCH Shipments by Region, World Market: 2005 to 2011
- ULCH Revenue by Region, World Market: 2005 to 2011
- ULCH Shipments by Technology, World Market: 2005 to 2011
- ULCH ASP by Technology, World Market: 2005 to 2011
- ULCH Revenue by Technology, World Market: 2005 to 2011
- ULCH Shipments by Handset Type, World Market: 2005 to 2011
- ULCH Shipments by Key Market, 2005 to 2011
- ULCH Revenue by Key Market, 2005 to 2011
- Popular Ultra Low Cost Handsets (sub $50), 2005 to 2006
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Number of Pages:
| 54 |
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Number of Tables, Charts and Figures:
| 13 |
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Deliverable Formats:
|   |
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Price:
| Login |
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Release Date:
| 1Q 2007 |
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