Monday, March 15, 2010
The market for 3G cellular modems, aside from those deployed in mobile phone handsets, will be worth more than $3.5 billion in 2010, according to according to market research company In-Stat.
This is likely to be good news for Qualcomm, Icera and ST-Ericsson who are all suppliers of 3G modem ICs. Shipments will continue to soar during 2010 but price erosion will also be savage, the company said.
The external 3G cellular modem segment is larger than the embedded modem segment in 2010, but embedded modems are on a path to surpass external 3G modems.
"The average selling price of external or USB modems dropped more than 25 percent in 2009 to below $65 per unit," said Allen Nogee, In-Stat analyst. "However price erosion will moderate in coming years, as multimode modems that also support WiMax, WiFi or LTE gain ground."
However, there is lingering resistence to 3G modems. The top reason cited by respondents to an In-Stat survey that asked why they would be averse to using cellular broadband services was slow performance.
By: DocMemory
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