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Ultra Low-Cost Handsets: Opportunities and Challenges

Product Type: Market Research Report
Published by: Informa Media and Telecom
Published: March 2006
Product Code: R443-182
Description
Ultra Low-Cost Handsets, a new Strategic Report from Informa Telecoms & Media, examines the challenges and opportunities facing this growing segment of the handset market. Through extensive primary research and independent analysis, this Strategic Report deals with the key factors affecting supply and demand of ultra low-cost handsets, accompanied by forecasts to 2010. Ultra Low-Cost Handsets provides complete coverage of the ultra low-cost handset segment analysing demand, supply, the technical challenges and future prospects of the ultra low-cost handset segment.

Why you need to read this report:
  • Discover how to address emerging markets with affordable devices to encourage the uptake of mobile communications while maintaining profitability
  • Evaluate the factors dictating demand from operators and their subscribers
  • Investigate the supply of ultra low-cost handsets and the components they're based on
  • Benefit from current and projected ultra low-cost feature sets including colour screens, push-to-talk, MMS and cameras
  • Examine the viability of the ultra low-cost segment, including information on barriers to entry such as economies of scale, engineering challenges and taxation, and assess possible solutions to overcome these barriers
  • Discuss likely future developments and where your company can profit from opportunities
  • Unique subscriber and sales forecasts to 2010 for all key global regions.
  • Subscriber forecasts for key ULCH target markets
Ultra Low-Cost Handsets Strategic Report investigates the key parameters and issues surrounding ultra low-cost handset market from several different angles:
  • Bill of materials and ex-works pricing including how the industry will reduce costs of components
  • Feature sets likely to appear in ultra low-cost handsets with continual reduction of price
  • Economies of scale required and making a profit from ultra low-cost handsets
  • Expectations for average hardware requirements by mobile market segment.
  • Ultra Low-Cost Handsets also looks at the benefits and risks of ultra low-cost handsets to the handset value chain.
Key industry questions answered by this Strategic Report include:
  • What is an ultra low-cost handset?
  • What is the addressable market for ultra low-cost handsets?
  • Will there be sub-segments within the ultra low-cost handset segment?
  • What are the current and future feature sets that will be seen in the ultra low-cost handset segment?
  • Why are handset vendors addressing the ultra low-cost handset segment?
  • How will Bill of Materials and ex-factory costs evolve and develop in 2005-2010?
  • What margin can handset vendors expect on ultra low-cost handsets?
  • What economies of scale are needed to be successful in the ultra low-cost handset segment?
Please Note: Informa requires that clients sign a confidentiality agreement prior to fulfillment of PDF email delivery for all PDF orders.
Table of Contents
Chapter 1: Executive Summary




Chapter 2: Demand for ultra low-cost handsets

The addressable market for ultra low-cost handsets


Benefits of mobile telecoms in emerging markets


What are the emerging markets?

Economic benefits of mobile telecoms in emerging markets

Social benefits of mobile telecoms in emerging markets



Profile of current subscribers in emerging markets


Prepaid vs postpaid


The benefits of prepaid for emerging market operators

OTA top ups


Voice vs data usage

Innovative mobile services offered in emerging markets


Shared access

Mobile information services

Mobile payments and banking


Lowest cost devices currently available in selected markets


Examples of handset prices

Handset affordability

Unofficial channels



The business case for operator involvement


What are the benefits of ultra low-cost handset development?

Why would an operator want to get involved in ultra low-cost handsets?


Reliability

Revenue

Personal expression

Lower cost


Impact of ULCHs


Reduction in ex-works cost of handsets

Low-cost distribution

Black market, revenue and affordability


What are the challenges and risks of ULCH development?


EMHP

Making the ULCH desirable


Total cost of ownership


Operator expenditure

Network extension

Service differentiation


Handset distribution




Chapter 3: Subscriber Analysis

Subscriber Forecasts


Ultra-Low Cost Target Markets

Regional Mobile Subscriber Analysis


Asia-Pacific


China

India


Latin America

Europe


Western Europe

Eastern Europe


Africa & the Middle East


Africa

The Middle East






Chapter 4: ULCHs supply-side analysis

ULCHs ex-works prices, 20052010


Definition of ULCH

CDMA


Typical ultra low-cost handset feature sets

ULCH market forecast 2005-2010


Worldwide handset sales


Worldwide handset sales by price tier

Slowing new handset sales growth

Broad balanced product portfolio

Brand

Affordability & desirability


Worldwide ULCH sales


North America

Latin America

AsiaPacific


India

China

Rest of AP Developing


Europe

Africa / Middle East


Africa

Middle East






Chapter 5: ULCH Vendor Strategy

Ultra low-cost handset margins and economies of scale


Margins

Scale


Main players in the Ultra-Low Cost Handset value chain


Production outsourcing


Handset Manufacturing Trends

Ultra low cost handset production



Handset vendors


Nokia

Motorola

Samsung

LG Electronics

Sony Ericsson

BenQ Mobile

TCT

Ningbo Bird

ZTE




Chapter 6: Technical aspects of ULCH

Current and future bill of materials (20052010)


Evaluating feature sets and product specifications from a BoM perspective


Bill of materials and feature sets (20052010)


Evaluating the lower boundary of UCLH BoM cost

Potential future components


FM/AM radio modules

MP3 player

Headsets and external speakers

Multi-user scenarios

GSM vs. CDMA, WCDMA BoM



An evaluation of the BoM costs of individual components


The chipset and printed circuit board (PCB)

Case Studies: Chipset vendor ULCHs strategies


Texas Instruments

Infineon

Philips Semiconductors

Freescale


Memory


ROM vs. flash memory

Expandable memory slots


Power supply

Battery technologies and chargers


Market trends for ultra low-cost handset batteries


Displays

Casings and form factors


Clamshell phones





Chapter 7: Evolving the Ultra-Low Cost Handset Market

How low-cost can ULCH be?


Bill of Materials

Other costs

Margin

Impact of cost reductions on ULCH


How can demand for ULCH be stimulated in emerging markets?


Handset and network equipment vendors

Operators

Associations

Governments

Other actors


Viability of the ULCH business model

Evolving the Ultra-Low Cost handset beyond its current limitations


Low cost 3G


Ordering and More Information
Price and Delivery Options



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