ABI: Memory Cards to Become Highest Revenue-Generating Mobile Phone Accessory
November 19, 2007 // Published as a news service by IHS
Revenue from shipments of removable memory cards for handsets is expected to be more than $7 billion in 2007, compared with $5 billion expected from headset shipments including both Bluetooth and wired headsets, according to a recent study from ABI Research.
Memory cards will continue to be the highest revenue-generating mobile phone accessory category over the next five years.
"With few exceptions, memory cards for handsets are bought by users separately from the handset purchase, whereas an increasing number of headsets are now being supplied inbox with the handsets," said ABI Research industry analyst Shailendra Pandey.
"Earlier handset vendors only provided wired headsets, but now even Bluetooth headsets are being presented inbox with the handsets. Therefore, greater aftermarket sales of memory cards versus increasing inbox sales for headsets are resulting in stronger growth and higher revenue from memory cards when compared with headsets."
Analysts said the recent announcement by Nokia, Samsung, Sony Ericsson, Spansion, STMicroelectronics, Micron Technology and Texas Instruments of support for the creation of the universal flash storage (UFS) specification for use in mobile phones, digital cameras and other consumer electronics (CE) devices is likely to fuel the rapid growth of the memory card market.
The UFS standard, expected to be finalized in 2009, will provide a unified memory solution for embedded memory and removable memory cards - eliminating the need to have adaptors for different memory card formats.
"In the coming years, a greater number of handset accessories (including memory cards) will be supplied inbox as handset vendors recognize that to boost sales of high-end, feature-rich mobile phones and smartphones, they need to offer accessories that allow users to benefit fully from the multimedia features in those handsets," Pandey said.
Analysts estimate the market for mobile phone accessories to grow steadily in the next five years, generating more than $80 billion in revenue in 2012. The continuing innovation and further advancements in technology - coupled with the increasing desire of customers to personalize their handsets - bode well for the future of the market.
Source: ABI Research.