Skip to main content

3G Mobile Network Market Trends

Wireless handset component makers are scrambling to support some challenging market trends including the proliferation of 3G services, reports In-Stat. By mid-2005, the number of 3G subscribers (CDMA2000 1X EV-DO & WCDMA) exceeded 50 million. The rollout of 3G services has created pressure for carriers to earn cellular data revenue, and has spawned a multitude of cellular devices of every shape and size, and with almost every feature possible.

"3G networks have made 2005 an exciting time for subscribers and a trying time for handset and component makers," says Allen Nogee, In-Stat analyst. "Carriers have spent billions to get their data networks off the ground; they have become desperate to start getting some payback."

In-Stat found the following:

- Price pressures are accelerating. GSM handsets have hit the $30 level, and the push is on for $20. WCDMA handsets, most of which also support GSM, remain expensive, but prices are dropping fast.
- Chip counts are dropping. Although both Intel and TI have long talked about their visions for a "one-chip" handset, now all chipmakers see the need to get handset chip counts down as fast as possible, especially for low-end handsets.
- Memory is growing greatly. Handsets are being made with larger and larger sections of flash memory, and some handsets have removable memory cards. Cellular carriers realize that subscribers won't buy songs and applications if they have no place to store them on their handsets.

Popular posts from this blog

Semiconductor Economics Rewritten by AI Demand

Semiconductor forecasts rarely move enough to reshape an enterprise boardroom budget conversation. Omdia's latest worldwide market study findings does exactly that. The research firm has raised its 2026 global semiconductor revenue forecast to 94.1 percent year-over-year growth, an increase driven almost entirely by memory pricing tied to artificial intelligence infrastructure. For technology executives, the number itself matters less than what sits underneath it. Applied-AI demand has now outrun the industry's capacity to produce and package the chips it needs, and Omdia expects that imbalance to persist through early 2027. The Semiconductor Forecast Revision Memory integrated circuits, DRAM and NAND combined, are now projected to account for more than 50 percent of total semiconductor revenue in 2026. That threshold has rarely been crossed in the industry's history. It marks a structural shift in where chip economics get decided. Logic used to set the pace of the industr...