The Multimedia Phones - Revisited. A Review, Update and Outlook Since Our 2004 Report (October, 2006)Two years ago we analyzed multimedia functions (pictures and music) in cell phones using their impact on handset mobility as a framework. We argued that pictures or music would be popular with subscribers only to the extent their utility in a mobile world outweighed their impact on the cost, size and power consumption of handsets. We concluded that imaging would not be popular with most subscribers because making handsets more appealing as cameras makes them less appealing as phones. Music, on the other hand, complements mobile phones because much of the utility of a standalone music player can be achieved with little impact to handsets, and music, like mobile voice service, can be used on the go. Our thesis and data from 2004 is playing out exactly how we outlined it back then today.
Review, Update and Outlook Since Our 2004 Report (June, 2006)The multimedia trends that we identified in 2004 are coming to fruition. Music phones are resonating with consumers because music has little impact on the cost, size and performance of mobile phones, while also being used in the same manner as the cell phone – that is, “on the go”. Handset OEMs that build compelling phones designed specifically for music features are likely to see strong sales. On the other hand, phones that emphasize pictures or video conflict with the cell phone use profile and may struggle in the market.
The Wireless Food Chain: How RF Semiconductor Companies are Capturing More Value in Mobile Handsets (June, 2006)Quantum changes in the handset market toward advanced, data-capable handsets are having profound impacts on the wireless foodchain. Semiconductor suppliers have an opportunity to increase content, volumes, and ASPs if they can provide high-performance, integrated chips demanded by the major cell-phone OEMs. Includes a matrix of who supplies what and how much in the foodchain.
Large Cap Wireless in 2006 (May 1, 2006)The industry’s move to EDGE and music-capable phones will help handset OEMs that can implement the technologies without sacrificing their phones’ mobility features of size and battery life. Infrastructure suppliers and others banking on 3G may struggle as EDGE technology achieves most of the upside from wireless data without the enormous capex investment required by 3G.
Multimedia Phones: A Quantitative Analysis of the Impact of Imaging and Music on Mobile Phones (September, 2004)Multimedia phones sporting cameras and music players have arrived; however, a feature that is technically possible won’t necessarily be commercially profitable. Camera phones are likely to do little to spur phone sales or data traffic because high quality cameras increase phone size and reduce battery life. On the other hand, music capabilities mesh well with cell phone user profiles and will be very popular once memory capacity is sufficient.