Next-gen cellphone demand to spur explosive growth in component sectors

27 March 2002 News

Despite short-term hiccups in the cellular IC market, long-term growth will be impressive, says Allied Business Intelligence (ABI). Increased demand for enhanced cellular handsets that have higher IC content than current 2G devices will fuel new growth in the market. In a recent 3G/cellular integrated circuit study, it says that the total available cellular integrated circuit (CIC) market will grow from $9,7 bn in 2001 to $31,5 bn in 2006. Slow network upgrades have stalled the market for ICs used in cellphones. However, phone makers are including attractive features in next generation phones to lure in buyers regardless of the status of network upgrades. The move toward complete solutions will impact both gallium arsenide (GaAs) and silicon players, as multimedia functionality is emphasised over conventional communications. Andy Fuertes, director of Wireless Research says that phones will cease to be 'just phones' and IC vendors will benefit from a virtual endless potential for upgrades and increases in features.

www.alliedworld.com

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