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Handset Economics: Features’ Value and Cost of Innovation Across Various Segments of the Handsets Market – 2nd edition

Handset Economics: Features’ Value and Cost of Innovation Across Various Segments of the Handsets Market – 2nd edition

Various 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.

Please Note: Informa requires that clients sign a confidentiality agreement prior to fulfillment of all orders. Fulfillment may take 2-3 days after receipt of form.


PowerPoint files
Handset Economics: Definitions and market sizing (24 slides)
The need for a new segmentation model
Defining and sizing different segments
The architecture of Informa’s methodology
Opportunities for different OS platforms and vendors
A glimpse of our pricing segmentation
Key takeaways and Informa’s viewpoint
Handset Economics: BOM and value analysis of features across different market segments (28 slides)
BOM analysis by market segment
Differentiating on memory footprint is not key for all segments
The display market: Size matters but at what cost?
Mobile dual-core processors, time to democratization
Camera and imaging: Many pixels vs. good pixels
The cost of migration to LTE
Software BOM: UI and terminal software IPRs vs. wireless IPRs
Battery technology – still no breakthrough
Key takeaways and Informa’s viewpoint
Handset Economics: Global market value and margins (16 slides)
Trends of mobile phone gross margins and vendors’ positioning
Global trend of mobile phone ASPs
Price elasticity of super-smartphones and entry-level smartphones
Smartphone ASP by device type
Non-smartphone ASP by device type
Competition between low-cost smartphones and feature-phones: price vs. user experience
Global handset market value by device segment
Key takeaways and Informa’s viewpoint

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