Handset Economics: Features’ Value and Cost of Innovation Across Various Segments of the Handsets MarketPublished by: Informa Media and Telecom Published: Dec. 1, 2012 Table of Contents
AbstractVarious technologies and features are fighting for space in an already crowded and expensive mobile phone real-estate. In an environment where consumers are increasingly demanding superior experiences at lower price points, operators and OEMs are under steady pressure to re-evaluate the cost and benefits of the various features they support in order to comply with increasingly complex requirements associated with the different mobile handset market segments.At the very high end of the market, the industry has already grasped the value of supporting LTE as an enabler of a true mobile-broadband experience. However, this experience requires an inter-correlated matrix of handset features without which it could not be guaranteed. While this significantly increases the BOM cost of the device, the value of adding LTE is currently of paramount importance for product differentiation and therefore for an increased margin. In cost-sensitive segments, OEMs are under pressure to control the cost related to adding new features or enhancing the performance of mobile phones. Any business value should be measured by both the commercial and technical benefit for adding this feature, the difficulty of implementing it, and how critical this feature could be for product differentiation. This report provides a detailed and quantitative assessment of the perceived value versus cost attached to a number of different features, hardware and software components. This analysis is derived from a meticulous and balanced examination of demand and supply chains across various segments of the mobile handset market. The end result provides the reader with a detailed price map of various components embedded in both the current and the future generations of mobile phones. A good understanding of economies of scale, price elasticity and strategies deployed by various stakeholders combine to enable Informa to forecast the average selling price attached to various mobile phones. In turn, this allows estimates to be made for the value of the mobile handset market across its different segments from basic phones to super-smartphones. Get full details about this report >> |
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