Chip Vendor Predicts 'Millions' of LTE Handsets by 2012
By Phil Goldstein
LTE chip maker Altair Semiconductor is predicting that the first LTE handsets will be commercial in the second half of next year, but that the devices will not gain mass market appeal until 2012. Once they do reach a mass audience, the company said there will be "millions" of units on the market.
Eran Eshed, Altair's co-founder and vice president of marketing and business development, said the company will debut its first LTE radio modem this November. In an interview with Unstrung, he said phones using Altair chips could get on the market later in 2010. "You'll see real handsets in real trials in the second half of 2010," he said. After that, Eshed said he expects volumes to rise in 2011, and then reach a mass market level by 2012. "That means millions of units," he said.
At least 12 separate operators are launching LTE networks around the world in 2010, according to ABI Research. The network deployments are expected to outpace the availability of LTE phones, and the first devices are expected to be laptop cards.
However, Eshed's prediction may not be that far off. A research report from Forward Concepts in July predicted that there will be 56 million LTE phones on the market by 2013. Other chip makers, including Qualcomm, have started playing in the LTE chipset field. [FierceWireless]
For Wireless Handsets, 2010 Will Be the Year the Bleeding Stops
No matter who you ask, the assessment is the same: 2009 will be a bad year for cellular handset sales worldwide. However ABI Research’s current forecasts for 2010 are cautiously optimistic – if by optimism you mean that we may see shipment numbers stabilize and maintain an essentially flat growth rate rather than falling further.
“ABI Research estimates that worldwide handset shipments will fall by at least 8% in 2009,” says practice director Kevin Burden, “and we believe that flat growth in 2010 is the best the market will deliver. We will see neither significant growth nor decline in shipments, and that would actually be a good outcome: the beginning of the upswing back to a more stable growth pattern.”
Even if global shipment numbers hold steady at essentially 2009 levels, there will be regional variations. Some regions such as the Middle East and Africa will fare comparatively better, but volumes there are quite low.
The Asia-Pacific region will suffer most in 2009, primarily as a result of its huge volume of shipments – roughly triple the next largest region. And stabilization – if it comes – will arrive there a little later than in North America and Europe, resulting in a 2010 forecast that still shows a minimal decline in shipments, while other regions may enjoy a minimal positive growth.
“There are telltale signs that at least some parts of the handset ecosystem may be starting to steady,” Burden adds. “Many handset vendors are replacing component inventories after reducing them to very low levels in recent months to keep from overextending as the market dropped. This doesn’t necessarily mean the whole market is doing better, but it is good news at least for the component suppliers, some of which were really suffering.” [ABI Research]
Dell Eying Smartphone Market
By Luke Simpson
With its market share in the personal computer business slipping, Dell may be the next computer company to enter the cell phone market.
According to The Wall Street Journal, engineers at Dell have produced two smartphone prototypes: one with a touch screen similar to Apple’s iPhone and another with a slide-out keypad. The prototypes reportedly use operating systems Android and Windows Mobile.
Dell would not comment on the article.
Speculation about Dell’s cell phone plans heated up when former Motorola mobile phone division head Ron Garriques went to Dell in early 2007. Garriques’ non-compete clause expires next month, according to the Journal report.
If Dell does release a smartphone, it will enter a market that saw sales of $157 million in 2008, up 26.9 percent from 2007. However, simply building a smartphone may not be enough, according to industry analyst Jeff Kagan.
“Not all smartphones are doing equally well. Some are hotter than others. BlackBerry was hot during the last month or two with their two new units being sold by AT&T and Verizon. Palm looks like it will be healthy again with their new handset expected during the next few months,” Kagan noted. “So will Dell devices hit a home run or will they just hit a single? That is the big question.” [Wireless Week]
Memory Cards Deliver Greatest Revenue of all Mobile Handset Accessories
Although cellular handset accessories such as chargers and batteries ship far more units in what is today a $58 billion industry, memory cards provide the greatest revenue of all mobile phone add-ons, according to a new study from ABI Research.
Driven by the photo, audio and video demands of media-centric handsets and smartphones, these memory cards, largely from third-party suppliers such as SanDisk, will see a 17% compound annual growth rate in shipments over the years to 2013.
However, says industry analyst Michael Morgan, it’s not just about units shipped: “Of all accessories, memory cards deliver the best revenue return. In fact, as production has outstripped demand the market is currently oversupplied, leading to a 60% year-over-year fall in per-Megabyte prices. However, the memory capacity of the cards being sold is always increasing, and the resulting higher Megabyte volumes more than offset the decline in ASP.”
Handset makers have been putting inexpensive low-capacity cards into smartphone and media phone boxes for some time. However, notes Morgan, there is currently a point of friction between handset vendors and carriers: the operators want all memory cards out of the box, preferring to sell higher-capacity cards separately. “The challenge for mobile operators,” he says, “is that subsidizing handset accessories means losing some of the high margins that they earn through the sales of these products. But subsidies also mean that many more subscribers will have handset accessories such as memory cards, and will be more likely to use mobile music services or download songs, leading to higher data ARPUs for operators.”
The new ABI Research study, “Mobile Phone Accessories” focuses on key handset accessories and the market for these products, including in-depth analysis for both in-box as well as aftermarket handset accessories. It also examines key market drivers and barriers to growth, technological trends, and future market potential for handset accessories. [ABI Research]
“Green” Handsets Subject to Conflicting Social and Economic Forces
Most mobile handset vendors acknowledge public pressure to create environmentally sound products. It is an issue they need to continue to address through their corporate responsibility charters. Faced with the economic realities of “going green” however, their appetite for creating biodegradable and recyclable products from sustainable resources often fades like a wireless signal in an underground parking lot.
“Several proof products that epitomize a vendor’s best greening efforts are currently being marketed,” says ABI Research director Kevin Burden, “but our research found that very few handset manufacturers – except those with the scale to do it economically, such as Samsung and Nokia – are highly motivated to produce lines of green phones. Instead, the effort is towards compliance and the trickling down of proven green elements throughout entire product lines.”
Scale is the key concept. Despite the vast numbers of phones that are produced and discarded every year, few vendors are working on the kind of scale that makes entire green product lines economically viable in their view.
Most mobile handset vendors do have recycling programs, but less than 5% of the annual worldwide volume of handsets shipped come back through recycling or ethical disposal programs. Regulatory pressures, coupled with corporate and social responsibilities, have forced the issue for most manufacturers. Many toxic substances have been legally banned and other substances known to threaten human health and the environment are being phased out voluntarily by many manufacturers.
Burden concludes: “A 2008 Nokia survey indicated that 76% of their respondents are more likely to buy phones from companies they consider environmentally responsible. That is a potential economic benefit, but hard to measure. As vendors move green features toward a platform approach for broader implementation, that is when negative economic factors flatten and the environment truly wins.” [ABI Research]
LG's Handset Division Ships 23M Phones in Q3
By Phil Goldstein
In the face of a sharp company-wide decline in net profit, LG said its handset division posted sales of $3.306 billion in the third quarter, up 40.8 percent from a year ago, and a profit of $2.93 million.The company as a whole however, known as LG Electronics, posted a decline in net profit of 93 percent, but the handset division was a bright spot. The handset unit accounted for 45 percent of total company revenue, up from 38 percent last year.
The handset division, fourth in terms of global shipments and Asia's second-largest maker of handsets, shipped 23 million units in the quarter, up 5 percent year-on-year, but down 17 percent from the second quarter of 2008, which it blamed on slower sales in India and emerging markets.
The company said that because of demand for some its higher-end handsets like the Secret and Viewty, operating profit for the division came in 11.5 percent.The company said it expected shipments to grow in the fourth quarter and for the division to reach a 2008 goal of shipping 100 million units. [FierceWireless]
Mobile Phone Sales Will Reach 1.28B in 2008
By Sue Marek
Research firm Gartner says that worldwide mobile phone sales will top 1.28 billion units in 2008, an 11 percent increase over last year. Handset sales reached 294.3 million in first quarter 2008 and the analyst firm expects sales in the second quarter to be between 300 million and 305 million. For the third quarter, Gartner expects a slight increase in sales over second quarter but only slight because both Motorola and LG issued warnings about a sequential drop in sales.
Gartner predicts handset makers will rely more on emerging markets to reach their growth projections. The firm expects Asia-Pacific to have a 17.9 percent increase in mobile phone sales in 2008 reaching 472.5 million. Meanwhile, Western Europe will experience a 1.5 percent decline from last year to reach 188 million in sales. North America will have a decline of 5.3 percent to reach 185.7 million in sales.
Avian Securities analyst Matt Thornton concurs with Gartner. He believes that mobile phone sales will reach nearly 1.3 billion units in 2008 and average selling prices (ASP) for phones will decline 8 percent year-over-year as sales shift to higher growth emerging markets. [FierceWireless]
New Wave of Innovative LiMo Handsets Feature Unique Mobile Experiences and Services
LiMo Foundation™, the global consortium of mobile leaders delivering an open handset platform for the whole mobile industry, unveiled today another wave of handsets using the LiMo Platform™. The seven new devices from Motorola, NEC and Panasonic Mobile Communications offer consumers around the globe a host of applications and services that enhance the mobile experience.
“The combination of LiMo’s transparent governance model, balanced development model and extensive mobile industry heritage sets it apart and has garnered strong industry support and engagement,” said Morgan Gillis, executive director of LiMo Foundation. “This next wave of LiMo handsets points to the innovation that will flow as the industry coalesces on the LiMo Platform."
The commercially shipping LiMo handsets being announced today are:
- MOTOZINE™ ZN5 from Motorola;
- FOMA N906i, FOMA N906iμ, FOMA N906iL and FOMA N706i from NEC and
- FOMA P906i and FOMA P706iμ from Panasonic Mobile Communications.
There are now 21 mobile handset models available using the LiMo Platform, the industry’s first collaboratively developed, Linux-based operating system for mobile devices. The new Motorola model—the company’s seventh LiMo handset— combines a high-quality phone and camera experience. The models from NEC and Panasonic Mobile Communications—which give the companies eight and six LiMo handsets, respectively—are available in Japan.
Several of the latest LiMo handsets include advanced enabling features that herald the forthcoming Mobile 2.0 experience for global consumers. These include international 3G/High-Speed Downlink Packet Access (HSDPA) roaming capabilities, Global Positioning System (GPS), mobile TV and advanced video streaming, secure payment and advanced mail functionalities—all presented through higher-resolution displays and intuitive user interfaces. More details on the new LiMo devices can be found through the Handsets section of http://www.limofoundation.org/.
"LiMo was founded on the notion that fragmentation of the mobile industry among dozens of proprietary, closed operating systems was inhibiting innovation,” said Kiyohito Nagata of NTT DOCOMO, chairperson of LiMo Foundation. “With such a variety of industry players cost-effectively adopting the LiMo Platform for non-differentiating handset middleware, more development resources are being devoted to enhancing the consumer experience. This new wave of LiMo handsets serves as proof.”
Launched in January 2007 by six mobile industry leaders, LiMo was formed to deliver an open and globally consistent software platform based upon Mobile Linux for use by the whole industry to catalyze next-generation mobile consumer experiences. LiMo Foundation is open to all vendors and service providers in the mobile communications marketplace, including device manufacturers, operators, chipset manufacturers, integrators and independent software vendors.
LiMo’s 52 members work collectively to build a rich ecosystem and have the ability to influence the evolution of the LiMo Platform, leaving them free to provide compelling and differentiated services to customers. [FierceDeveloper]
Mobile Phone Sales Will Reach 1.28B in 2008
By Sue Marek
Research firm Gartner says that worldwide mobile phone sales will top 1.28 billion units in 2008, an 11 percent increase over last year. Handset sales reached 294.3 million in first quarter 2008 and the analyst firm expects sales in the second quarter to be between 300 million and 305 million. For the third quarter, Gartner expects a slight increase in sales over second quarter but only slight because both Motorola and LG issued warnings about a sequential drop in sales.
Gartner predicts handset makers will rely more on emerging markets to reach their growth projections. The firm expects Asia-Pacific to have a 17.9 percent increase in mobile phone sales in 2008 reaching 472.5 million. Meanwhile, Western Europe will experience a 1.5 percent decline from last year to reach 188 million in sales. North America will have a decline of 5.3 percent to reach 185.7 million in sales.
Avian Securities analyst Matt Thornton concurs with Gartner. He believes that mobile phone sales will reach nearly 1.3 billion units in 2008 and average selling prices (ASP) for phones will decline 8 percent year-over-year as sales shift to higher growth emerging markets.
MetroPCS Will Flash Existing CDMA Handsets
Consumers Can Now Activate Their Existing CDMA Handsets on MetroPCS' Network, Offering the Freedom to Enjoy the Nation's Most Affordable and Flexible Wireless Service
MetroPCS Communications, Inc., the nation's leading provider of unlimited, flat-rate wireless communications service, announces the launch of MetroFlash, allowing consumers to bring their compatible CDMA handsets to be used on MetroPCS' network. Coupled with its low cost, flat-rate unlimited wireless service, MetroPCS is further broadening consumers' freedom to enjoy more cost efficient, flexible wireless options. MetroFlash will eliminate for many consumers the requirement of having to purchase a new handset when signing up for MetroPCS service.
"Offering consumers the ability to join MetroPCS with their existing handset makes switching carriers easier - and more cost efficient - than ever," said Tom Keys, Chief Operating Officer of MetroPCS. "Not since number portability have consumers been offered such a convenient option in switching service providers. With the rising cost of gas and food, consumers are looking for ways to reduce expenses and the launch of MetroFlash, along with our flat-rate, unlimited low cost service plans, makes MetroPCS a more affordable wireless option."
Customers using MetroFlash will receive a free month of service, plus unlimited local, long distance, voicemail and text messaging for $40 a month and pay a $30 fee. The service will be available at all MetroPCS company owned stores and select authorized dealers in all MetroPCS markets, excluding Las Vegas and Shreveport/Bossier City. Consumers can go to MetroPCS or a MetroPCS company owned store to determine if their phone is compatible with MetroFlash.
MetroPCS' unlimited, flat-rate wireless, no signed contract plans range from $30 to $50 per month and allow subscribers to talk all they want, 24-hours-a-day, seven days a week. Unlike most carriers, MetroPCS does not require a signed contract, which means that consumers can activate service without going through a credit check or paying a deposit. Many of the plans include unlimited features such as voicemail, caller ID, call waiting, three-way calling, text and picture messaging, push e-mail, mobile Internet browsing, mobile instant messaging, and Metro411, a voice-activated, premium directory assistance service. Additionally, MetroPCS offers unlimited family plans for an affordable low price.
With approximately 4.4 million subscribers nationwide, continued consumer demand for MetroPCS' affordable, flexible, predictable, unlimited, no signed contract, flat-rate wireless service has been the driving factor behind the company's expansion across the country.
Consumers can visit any of MetroPCS' authorized dealer locations and company-owned retail locations or visit MetroPCS' web site here to sign up for service plans, and choose from a lineup of wireless phones from the top handset manufacturers. /PR/FierceWireless
Verizon, Nokia Team Up for Batman Handset
By Jason Ankeny
While the Caped Crusader himself still relies on the Bat-Signal as his primary means of communication, Verizon Wireless and Nokia will partner to release a special Batman-themed edition of the Nokia 6025 handset in advance of the July 18 theatrical release of the feature film The Dark Knight. Debuting exclusively at Verizon's online retail storefront on June 15, the Nokia 6205 The Dark Knight edition is a black flip-phone embellished with a Batman emblem, and arrives pre-loaded with wallpapers, voice tones, animated screensavers inspired by the film and a movie trailer.
In addition, the device includes a 1.3 megapixel camera with flash and 4x digital zoom, 58 MB internal memory expandable up to an additional 4 GB with an optional microSD memory card, messaging support, Get It Now content capabilities and the VZ Navigator location service. A Joker playing card included with the phone includes links to contests, games and exclusive The Dark Knight downloads available via Verizon's V CAST service. [FierceMobileContent]
Dior Follows in Prada's Footsteps With Fashion Phone
By Sue Marek
Luxury designer Christian Dior is following in the footsteps of Prada and Dolce & Gabbana by unveiling a line of high-end mobile phones priced around $5,000. The phones will be manufactured by ModeLabs Group and are expected to be particularly popular with consumers in China and Russia. Dior expects to sell about 10,000 of the pricey devices per year.
The first Dior phone is a clamshell device with a touchscreen and camera. The designer also plans to offer a miniature phone headset the size of a USB key so that women can clip the phone to their purse instead of rummaging through their bags to find their phones. More specifics on the device haven't been released yet. Are you ready to spend $5,000 on a phone without knowing more details? [FierceWireless]
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New Dior Phone Targets China, Russia
More Than 550 Million GPS-Enabled Handsets Will Ship by 2012
Tags GPS Location-based services
In the wake of personal navigation devices’ success, cellular carriers have started to offer on-board and off-board navigation solutions, as well as a range of LBS (Location Based Services) such as friend finder and local search on GPS handsets. Community and social-networking-related functionality, such as the sharing of POIs (Points of Interest) and geo-tagged pictures, is also becoming popular and is expected to boost GPS-enabled handset uptake as carriers, handsets manufacturers, and service providers look to capitalize on the LBS trend.
“While most CDMA handsets are already GPS-enabled and GPS is set to become a standard feature in GSM smartphones, GSM feature phones are next on the agenda to be equipped with GPS technology,“ says ABI Research principal analyst Dominique Bonte. “GPS chipset vendors increasingly target handsets, looking for new markets and spurred on by the recent dramatic growth of personal navigation devices.”
However, as GPS begins to penetrate lower-end phones, the cost, power consumption, and footprint of GPS chipsets will have to be further reduced. This will be made possible by single chipset technology and the emergence in 2009 of combination chips integrating GPS, Bluetooth, and Wi-Fi all on one die. Major silicon vendors such as Broadcom, NXP, and Atheros are well positioned to develop such solutions following the acquisition of GPS chipset vendors Global Locate, GloNav, and u-Nav, respectively.
At the same time, the thorny issue of indoor GPS coverage has to be addressed, since handset-based LBS services are frequently used in challenging environments with reduced GPS signal strength. Network-assisted A-GPS and high-sensitivity GPS-receivers are becoming key requirements to reduce the time necessary to acquire fixes and to improve location accuracy.
ABI Research’s report, GPS-Enabled Mobile Devices, examines the market landscape and future potential for GPS-enabled mobile phones. It discusses critical business and marketing issues, as well as market opportunities and challenges for handset vendors, mobile operators, semiconductor vendors, and other industry players who address the GPS-enabled handset market. [ABI Research]
More Than 550 Million GPS-Enabled Handsets Will Ship by 2012
In the wake of personal navigation devices’ success, cellular carriers have started to offer on-board and off-board navigation solutions, as well as a range of LBS (Location Based Services) such as friend finder and local search on GPS handsets. Community and social-networking-related functionality, such as the sharing of POIs (Points of Interest) and geo-tagged pictures, is also becoming popular and is expected to boost GPS-enabled handset uptake as carriers, handsets manufacturers, and service providers look to capitalize on the LBS trend.
“While most CDMA handsets are already GPS-enabled and GPS is set to become a standard feature in GSM smartphones, GSM feature phones are next on the agenda to be equipped with GPS technology,“ says ABI Research principal analyst Dominique Bonte. “GPS chipset vendors increasingly target handsets, looking for new markets and spurred on by the recent dramatic growth of personal navigation devices.”
However, as GPS begins to penetrate lower-end phones, the cost, power consumption, and footprint of GPS chipsets will have to be further reduced. This will be made possible by single chipset technology and the emergence in 2009 of combination chips integrating GPS, Bluetooth, and Wi-Fi all on one die. Major silicon vendors such as Broadcom, NXP, and Atheros are well positioned to develop such solutions following the acquisition of GPS chipset vendors Global Locate, GloNav, and u-Nav, respectively.
At the same time, the thorny issue of indoor GPS coverage has to be addressed, since handset-based LBS services are frequently used in challenging environments with reduced GPS signal strength. Network-assisted A-GPS and high-sensitivity GPS-receivers are becoming key requirements to reduce the time necessary to acquire fixes and to improve location accuracy. [ABI Research]
Report: Music Phone Shipments Top MP3 Players
Worldwide shipments of music phones exceeded half a billion units in 2007, outnumbering shipments of personal media players like the iPod by close to 300 million units, according to new data released by market analysis firm MultiMedia Intelligence.
Defining music phones as handsets with two essential features--music codec functionality (e.g., MP3, AAC, etc.) and a memory slot enabling the user to carry a personal music library--MultiMedia Intelligence forecasts mobile music services like ringtones, ringbacks, full-track downloads and streaming media solutions will yield combined revenues in excess of $6 billion in 2008. [FierceMobileContent]
Sprint Launches EV-DO Rev. A Handset
Sprint announced that it would release a software update for its HTC Mogul handset that would allow the phone to connect to its EV-DO rev. A network. The HTC Mogul is the first handset to connect to the data network, which has been restricted to data cards for laptops up until this point. Verizon Wireless also has an EV-DO rev. A network, but to date it has only been used for laptop data cards, too.
Sprint said the Rev. A network provides Downloads speeds should be 600 kilobits per second to 1,400 kbps, up from a range of 400 kbps to 700 kbps with Rev. 0. It will be capable of uploads of 350 to 500 kbps, up from 50 kbps to 70 kbps
Sprint said its broadband network now covers 234 million people, and the vast majority of it has been upgraded to EV-DO Rev. A, short for Evolution-Data Optimized Revision A.
The Mogul is a smart phone that runs Windows Mobile software and can be used as a modem for a laptop. It costs $199.99 with a two-year contract and went on sale in June. The software update will be available immediately from HTC's site. [FierceWireless]
Nokia Unveils Nanotechnology Concept Phone - MORPH
Nokia and the University of Cambridge jointly unveiled Morph, a nanotechnology concept phone that promises to demonstrate how future mobile devices might be stretchable and flexible, enabling the user to transform handsets into radically different shapes.
Developed by the device giant's Nokia Research Center unit in association with Cambridge engineers, Morph was launched in conjunction with the Museum of Modern Art's current "Design and the Elastic Mind" exhibition, and purports to illustrate the ultimate functionality inherent in nanotechnology, typified by flexible materials, transparent electronics and self-cleaning surfaces.
According to Nokia, elements of the Morph initiative are still a good seven years away from integration into handheld devices, although it believes nanotechnology may one day lead to reduced manufacturing costs.
"We hope that this combination of art and science will showcase the potential of nanoscience to a wider audience," said Dr. Tapani Ryhanen, head of the Nokia Research Center's Cambridge laboratory, in a prepared statement. "The research we are carrying out is fundamental to this as we seek a safe and controlled way to develop and use new materials."
Professor Mark Welland, Head of the Department of Engineering's Nanoscience Group at the University of Cambridge and University Director of Nokia-Cambridge collaboration added: "Developing the Morph concept with Nokia has provided us with a focus that is both artistically inspirational but, more importantly, sets the technology agenda for our joint nanoscience research that will stimulate our future work together."
The partnership between Nokia and the University of Cambridge was announced in March, 2007 - an agreement to work together on an extensive and long term programme of joint research projects. NRC has established a research facility at the University's West Cambridge site and collaborates with several departments - initially the Nanoscience Center and Electrical Division of the Engineering Department - on projects that, to begin with, are centered on nanotechnology.
Elements of Morph might be available to integrate into handheld devices within 7 years, though initially only at the high-end. However, nanotechnology may one day lead to low cost manufacturing solutions, and offers the possibility of integrating complex functionality at a low price.
Morph concept technologies might create fantastic opportunities for mobile devices:
- Newly-enabled flexible and transparent materials blend more seamlessly with the way we live
- Devices become self-cleaning and self-preserving
- Transparent electronics offering an entirely new aesthetic dimension
- Built-in solar absorption might charge a device, whilst batteries become smaller, longer lasting and faster to charge
- Integrated sensors might allow us to learn more about the environment around us, empowering us to make better choices
$40 Billion Expected from Handset Accessories Sales in 2008
Sales of mobile phone accessories are expected to generate over $40 billion in revenue in 2008. Handset vendors and mobile operators know that to increase sales of their feature-rich handsets, they also need to provide accessories that will allow users to fully enjoy and benefit from the applications and features supported by the handsets. This means providing accessories such as headsets, memory cards, and data connection kits, in addition to chargers and batteries.
“Current market trends including the growing adoption of smartphones in the prosumer and consumer segments, as well as the increasing popularity of iPhone-like feature-rich devices with touchscreens are contributing to the growing demand for mobile phone accessories,” says ABI Research industry analyst Shailendra Pandey. “Further, more people buying expensive smartphones and feature-rich devices mean greater demand for accessories that protect handsets, and also for accessories that enable the use of different features and applications on the handsets.”
The growing popularity of mobile phones with large screens and touchscreens is resulting in strong sales of accessory products that offer handset protection, such as carry cases, covers, screen protectors, and scratch removers. Audio-video playback capabilities in handsets are resulting in growing demand for earphones and headsets, as well as memory cards to enable storage of music, videos and images.
Also, the need for connecting the mobile phone to the PC/laptop for transferring multimedia and data files means a greater need for accessory products such as data connection kits and USB chargers.
ABI Research expects the market for mobile phone accessories to grow steadily in the next five years, generating over $80 billion in revenue in 2012. [ABI Research]
Garmin Launches GPS Feature Phone
Garmin International Inc., a unit of Garmin Ltd. and the world's leading GPS manufacturer unveiled a GSM HSDPA smartphone, called the nuvifone, that runs on its own operating system with GPS at its core.
The phone includes Google local search, Garmin online services like traffic, fuel prices, hotel discounts, pedestrian navigation services, email, text, IM, camera and video camera functionality and an MP3 player. The company did not disclose the price or carrier partner for the phone, but said it would launch commercially in the third quarter.
"The real popularity of their products and brand make the prospects for this product better than their previous ones," NPD Group's Ross Rubin said in an interview. "We are starting to see more impressive user interfaces and navigation features on both smartphones and more expensive feature phones, so it's going to be challenging for Garmin to break into that field as a new brand." Rubin seemed most impressed by the nuvifone's ability to send geotagged photos to another unit so that drivers can use that information to create driving directions on the fly.
That said, "the media features don't seem especially strong right now," Rubin noted. "[Garmin] mentions an MP3 player, but they didn't say anything about video despite the high speed radio they have in there. Garmin might be waiting to see what services their carrier partners want to push over the air. Given that they are supporting HSPA, AT&T seems like the likely carrier to carry it in the third quarter."
"The nuvifone is an all-in-one device offering unmatched integration of utility and function in a single mobile device," said Cliff Pemble, Garmin's president and COO. "This is the breakthrough product that cell phone and GPS users around the world have been longing for -- a single device that does it all."
The nuvifone is an innovative mobile phone that has a wide range of advanced yet easy-to-use features. The all touchscreen device is the first of its kind to integrate premium 3.5G mobile phone capability with an internet browser, data connectivity, personal messaging, and personal navigation functions in one device. When powered on, the 3.5-inch touchscreen display reveals three primary icons --"Call," "Search," and "View Map" which allow the user to effortlessly master the n vifone's functions.
The nuvifone is Garmin's first device to include Google local search capability, which harnesses the vast point of interest information available from the world wide web. Nuvifone users can search for locations like "coffee shops" and Google will sort the results based on the user's current location and relevance. Information provided by Google includes a web-based rating so that users can select the most appropriate destination and route directly to it.
In addition, the nuvifone includes a web browser incorporating premium features and touchscreen operation for an optimum mobile browsing experience. The nuvifone also includes personal messaging functions, including email, text, and instant messaging. [FierceWireless]
Features include:
- Google local search
- Garmin Online services - traffic, weather, fuel prices, hotel discounts, etc.
- nuvi-like navigation on the road or in pedestrian mode
- Email, text, IM functions
- amera, video camera, MP3 and MPEG4/AAC
Personal Navigation Devices Will Be Complemented, Not Replaced, by Handset-Based Navigation Solutions
Over the next several years, mobile handsets will play an increasingly important role in portable navigation markets, with handset-based navigation devices reaching an annual sales volume of more than 96 million units by 2012.
ABI Research observes that navigation device sales continue to outperform the industry’s expectations and forecasts, with the 2007 holiday season illustrating that the US market is quickly catching up to Europe in its embrace of navigation, particularly PNDs (Personal Navigation Devices).
The PND market remains characterized by a high rate of innovation, including real-time connectivity, multimedia functionality, and community and social networking features, along with enhanced integration into the car environment.
“But consolidation and fall-out is accelerating in light of recent announcements from Cobra and ViaMichelin, who intend to quit the standard PND market,” says Dominique Bonte, ABI Research principal analyst.
Handset-based navigation will not challenge the PND navigation form factor in the near future; and despite the relative success of off-board navigation in the United States – with more than 4 million paying subscribers – PNDs remain the most user-friendly in-car navigation device.
Handsets will complement, rather than displace, PNDs, with a number of users owning more than one navigation device.
Important barriers such as the lack of GPS handsets, especially in Europe (and the issue of indoor coverage), will have to be removed before handset-based location services can be adopted on a broader scale.
“While traditional, factory-installed in-car navigation systems remain expensive and are offered only as an option on mid- and high-end cars, their perfect integration into the car environment guarantees ease-of-use and safety,” continues Bonte.
ABI Research expects penetration rates of factory-installed navigation systems in the United States and Europe to increase gradually to 30% by 2012, reaching an annual volume of more than 10 million units.
A recent report from ABI Research entitled, Consumer Navigation Devices and Systems, explains in depth the underlying reasons and drivers for the success of PNDs in the context of the broader navigation market.
Moreover, the report defines the critical success factors for PND vendors to survive in an increasingly competitive and unforgiving marketplace. It provides a detailed SWOT analysis for each form factor, and is part of two ABI Research Services: Automotive Infotainment and Location Aware Services. [ABI Research]
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