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Long-Term Prospects for Handset Components Strong Reports In-Stat/MDR
SCOTTSDALE, Ariz., May 27, 2003 (BUSINESS WIRE) -- The last 12 months has been a very trying time for both handset component manufacturers and handset manufacturers alike, reports In-Stat/MDR (http://www.instat.com). The high-tech market research firm finds that, after many years of incredible growth, the handset industry has hit a series of stumbling blocks, including everything from a slow worldwide economy, to lackluster consumer acceptance of some new cellular services such as wireless data.
While the number of handsets continues to increase, the vast majority of handsets sold each year are standard, voice-centric devices, and not the data-centric devices that service providers were hoping for. Still, according to Allen Nogee, a principal analyst with In-Stat/MDR, "Signs of returning growth are starting to appear, and with 2.5G and 3G already in operation, long-term prospects for growth look good, and new technologies look promising, although the days of rapid growth in handset semiconductor revenue are behind us."


In-Stat/MDR has also found that: -- In terms of semiconductor revenue, the next few years look relatively flat. While units are increasing, drops in component costs will compensate for any unit increases. From 2002 to 2007, the revenue from core handset semiconductors is forecast to drop at an average rate of a bit more than 3% per year. -- In terms of add-on components, those semiconductor components that add to the basic functionality of a handset, the future looks bright. These add-ons include Bluetooth, cameras, GPS location technology and MPEG-4 multimedia technology. Revenue from add-ons is forecast to grow from approximately $856 million in 2003, to almost $1.7 billion in 2007. In terms of size, the add-on segment of the total handset semiconductor market represents 10% or less than the size of the core handset semiconductor market.
The report, "Wireless Handset Components -- The Rapidly Evolving Mix"(#IN030924WT), analyzes the trends and technology in cellular handsets, and translates this into what it will all mean for semiconductor manufacturers. Forecasts in this report include component chipset units, average selling prices and handset revenue for the following handset semiconductors: Bluetooth, GPS, WLAN, MPEG-4, camera image sensors and main handset semiconductors, which are broken out by RF/IF, baseband, flash, SRAM, audio, power management and discretes. Five-year semiconductor forecasts are also broken out by air-interface technology into the following categories: CDMAOne, CDMA2000 1X EV-DO, CDMA2000 1X EV-DO, GSM, GSM GPRS, GSM EDGE, TDMA, PHS, PDC and W-CDMA. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-wt.htm or contact Rick Vogelei at 480/609-4533, [e-mail]. The report price is $3,795.
About In-Stat/MDR
In-Stat/MDR (http://www.MDRonline.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.
In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science and medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.
SOURCE: In-Stat/MDR


CONTACT: In-Stat/MDR Allen Nogee, 480/609-4538 [e-mail] Kirsten Skedd, 480/609-4534 [e-mail]: http://www.businesswire.comToday's News On The Net - Business Wire's full file on the Internetwith Hyperlinks to your home page.
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