Qualcomm Powered Devices Attract $189 per Handset More Subsidy than Other Devices

image
18 Jun 2013

Qualcomm powered devices are capturing the high end of the device market and this overriding factor has resulted in Qualcomm attracting an average implied subsidy of $530 compared to $341 for other IC vendor based products.

High end devices remain the most profitable part of the mobile device market; however, these margins are increasingly being challenged due to intense competition causing feature creep, i.e. more features are packed into the device, for no extra revenue.

Handset Implied Subsidies.png

Senior practice director for devices, Nick Spencer stated: “Competition is intense and some feature creep is inevitable, but vendors need consider which features create real value for the end user. The question they should ask themselves is, whether they should add in new features, rather than whether can we add in new features? Not focusing on innovation and value creation will result in a price war and margin erosion.”

While the mobile industry and media tend to focus on the high end of the market, it is worth noting that it is largely a replacement market—most of the future growth in the smart mobile device industry will come from lower priced devices. Stuart Carlaw, chief research officer, added: “Opportunity remains for device vendors and their IC vendor partners who can profitably optimize their product’s feature sets for low-end device markets and price points.”

This information is found in the ABI Research Device Portal: a comprehensive guide to all mobile handsets. Data is sortable by manufacturer, carrier, price band, subsidy level, sales channel, and ICs.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

About ABI Research

ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670

Related Service