Technology

August 3, 2010

Wi-Fi mobiles threaten 3G revenues

By Emmanuel Elebeke
Most consumers will be using mobile handsets with chipsets that provide Wi-Fi, Bluetooth and GPS (Global Positioning System) within the next five years.

According to a recent  researcher study conducted by ABI Research, revealed that  the past four quarters of decline in mobile handset sales had reversed with, a 4 percent growth in sales in the fourth quarter of 2009 with a resultant effect in 2010.

The report said it expected this to continue for the next five years as consumers opt for handsets that deliver better performance and battery life as well as those with multi-core processing using the latest apps and mobile capabilities.

The report further revealed that it expected that Wi-Fi chips would deliver the highest revenue of the three connectivity chips over the next five years and penetration rates for Bluetooth to average 57% in 2010 and GPS to double between 2010 and 2015, but it said.

“Components such as baseband processors and application processors, which account for more than 60% of revenue in this segment, are expected to show revenue increases of 3% and 8% respectively in 2010.

Qualcomm’s dual core Snapdragon processor, announced in June, signaled a new era for technology architecture development in which the market is set to see some significant improvements in application processor performance and power consumption, even as sales increase and average selling prices drop,” said the report.