SCOTTSDALE, Ariz. – Cellular handsets continue to enjoy significant sales growth, with total revenue in 2007 from handset semiconductors to exceed $31 billion worldwide, according to the high-tech market research firm In-Stat.
An In-Stat consumer survey released Wednesday also shows that one of the more popular cell phone features is Bluetooth, with users across the board requesting it.
“The features that appear in cellular handsets are an interesting mix of consumer wants, cellular operator revenue opportunities, and semiconductor manufacturing abilities,” said In-Stat analyst Allen Nogee.
“If a feature is fairly expensive to produce, a handset manufacturer may include it in a few high-end models to test the market. At the other end of the spectrum, some features are so cheap, such as digital cameras, that cell phone manufacturers include them in many models at the operator’s request. These features enable more consumers to use more revenue-generating services such sending digital photos over wireless networks,” Nogee said.
In-Stat’s research also found that handset semiconductor revenue will reach $32.2 billion by 2012, add-on semiconductors, such as Bluetooth and GPS, are growing at a faster rate than core handset components, and the average selling price of core semiconductors in an HSPA handset will drop from $60.72 in 2006 to $14.61 in 2012.
