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Smartphone BOM Decreases by Nearly 13% in 2010
Posted: 15-Mar-2011 [Source: In-Stat]

[In-Stat reports the bill of materials for smartphones dropped nearly 13% in 2010 compared to 2009.]

Scottsdale, AZ -- A smartphone is made up of numerous components. The display and baseband/processor remain the most expensive phone parts, but both have dropped in price sharply in 2010, primarily from increased volumes and from an increasing share of lower-cost smartphones. Overall the smartphone BOM decreased nearly 13% in 2010 over 2009, says In-Stat ( “For many smartphones, GPS, Bluetooth, and Wi-Fi (and sometimes FM radio) have been integrated into one chip,” says Allen Nogee, Principal Analyst. “This has reduced the cost of all three components. The use of open-source software took a jump this year, which also helped reduce the cost of software and licensing.” Recent In-Stat research found:

* More than half of US handset shipments will be smartphones by 2012. * The smartphone OS war is heating up, as relatively new or renewed entrants such as MeeGo, Bada, WebOS, and others join a very crowded market. * By 2015, over two thirds of smartphones will still be WCDMA-based. LTE smartphones will comprise only a small minority of annual handset shipments, even in 2015. * The display and baseband/apps processor are the two high cost items in the bill of materials. Other significant items include memory, camera, software and licensing, and case and manufacturing.

Recent In-Stat research Smartphones: A Worldwide View (#IN1004729WH) is a 70-slide PowerPoint deliverable covering the worldwide smartphone market from technology through operating systems including:

* Forecasts of smartphone unit sales segmented by OS, as well as attach rates for touchscreens, Bluetooth, Wi-Fi, and accelerometers through 2015. * Analysis of smartphone features, including operating systems, touchscreens, applications, image sensors, and wireless connectivity options. * Examination of smartphone components and bill of materials.

For a free sample of the report and more information contact Elaine Potter,; (480) 483-4441.


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