Tuesday, February 21, 2006

Wireless World 30 Billion In TV Phones

The content isn't quite up to the level of Kiefer Sutherland's anti-terrorist, noir drama "24" just yet, but mobile TV enabled telephones are nonetheless poised for massive market growth, and experts tell United Press International's Wireless World that the sales could reach $30 billion in the coming years.
A report released this week by Boston-based Strategy Analytics, called "TV Phones: Integration and Power Improvements Needed to Reach 100 Million Sales," predicts that TV phone sales revenue will soar from $5 billion in this year to more than $30 billion by 2010.
Enabling technology vendors, including Qualcomm, TI, ATI, Philips and STM Microelectronics are working with handset vendors, as they struggle with an array of issues, including the size, design, power, integration and price of the new products.
Just as during the first big era of consumer electronics, back in the 1980s and early 1990s, foreign firms may dominate the initial development of the American market.
"Japan and Korea dominate market volumes today, accounting for over 80 percent of TV phones sold in 2006," said Neil Mawston, associate director of the global wireless practice at Strategy Analytics said. "However, Western Europe and North America, as well as China, will be the hot spots for global volume growth over the next few years. We expect Western Europe to ramp up to over one million units sold this year, with North America and China coming online in 2007."
The share of TV phone volume held by Japan and Korea will drop precipitously to less than 50 percent by 2008, and under one-third by 2010, he added.
Why will that happen? Experts see component integration and improvement in the power-performance driving form factors and total product weight below the "sweet spot" 100-gram level, said Chris Ambrosio, director of wireless device research at Strategy Analytics. "The feeding frenzy around TV phones however, is a tremendous positive for component vendors such as ATI, as well as memory vendors like Sandisk and display vendors who will see that over two-thirds of mobile phones sold will have displays larger than 2.5 inches," said Ambrosio.

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