Wireless chip sales to reach $53 billion in 2004, says In-Stat
Semiconductor Business News
(08/09/00, 05:56:15 PM EDT)
SCOTTSDALE, Ariz. -- Semiconductor sales in wireless handset applications will grow at a compounded annual growth rate of 40% during the next four years, reaching $53 billion in 2004, according to a new report from Cahners In-Stat Group here.
"These days, wireless customers are becoming increasingly demanding" noted Allen Nogee, a senior analyst with In-Stat's Wireless Service operation. "Consumers want smaller phones and are willing to pay a price premium for them. Several have recently broken the four-ounce barrier, something thought impossible just a few years ago."
New features being added to handsets for Internet access are also driving chip sales, he said. "Data will play a much greater role and some phones will even incorporate PDA-type functionality," the analyst said. "Some already contain built-in FM radios and MP3 players and in the future, will have the ability to download audio and video files off the Internet."
Analog wireless phone sales will account for about 10% of the new units shipped this year, according to In-Stat. In 2004, analog phone sales will only account for 1% of sales, said the research firm. In-Stat believes code division multiple access (CDMA) digital phones will account for more than 44% of all cell phones sold in 2004. |
