Comments on: How iPhone Could Resurrect Wireless Chip Makers http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/ The Business of Technology Fri, 05 Dec 2008 00:09:38 +0000 http://wordpress.org/?v=MU hourly 1 By: Semiconductor Forecasts Predict Cheaper Gadgets Ahead - GigaOM http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-910221 Semiconductor Forecasts Predict Cheaper Gadgets Ahead - GigaOM Mon, 03 Nov 2008 21:37:16 +0000 http://gigaom.com/?p=14150#comment-910221 [...] as people put off purchasing new handsets, PCs or Blu-ray players. But people are also purchasing cheaper electronics that don’t have as high a silicon content. This means phones like the iPhone that contain 19 high-value semiconductors are replaced by phones [...] [...] as people put off purchasing new handsets, PCs or Blu-ray players. But people are also purchasing cheaper electronics that don’t have as high a silicon content. This means phones like the iPhone that contain 19 high-value semiconductors are replaced by phones [...]

]]> By: Chipmakers Want a Bailout Too - GigaOM http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-902618 Chipmakers Want a Bailout Too - GigaOM Thu, 02 Oct 2008 13:52:52 +0000 http://gigaom.com/?p=14150#comment-902618 [...] that point home, SIA said PCs and cellphone sales were a large part of the overall growth. Citing a recent Credit Suisse report, the association said PC unit sales were up 9.1 percent in [...] [...] that point home, SIA said PCs and cellphone sales were a large part of the overall growth. Citing a recent Credit Suisse report, the association said PC unit sales were up 9.1 percent in [...]

]]> By: Apple’s Custom iPhone Chips Would Hurt Samsung - GigaOM http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-900002 Apple’s Custom iPhone Chips Would Hurt Samsung - GigaOM Wed, 17 Sep 2008 16:31:26 +0000 http://gigaom.com/?p=14150#comment-900002 [...] that contain the brains and the communications capabilities of the phone on the same platform, rather than separated as the iPhone does. Samsung doesn’t release market data for its mobile applications processors, but analysts say [...] [...] that contain the brains and the communications capabilities of the phone on the same platform, rather than separated as the iPhone does. Samsung doesn’t release market data for its mobile applications processors, but analysts say [...]

]]> By: Chips Work Hard for the Money, Just Like Everyone Else - GigaOM http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-896307 Chips Work Hard for the Money, Just Like Everyone Else - GigaOM Fri, 29 Aug 2008 04:01:28 +0000 http://gigaom.com/?p=14150#comment-896307 [...] iPhone is a good example of a wireless device that utilizes several special purpose chips, with more than 19 in total and at least five radios, which send and receive the wireless signals that allow a phone [...] [...] iPhone is a good example of a wireless device that utilizes several special purpose chips, with more than 19 in total and at least five radios, which send and receive the wireless signals that allow a phone [...]

]]> By: STMicro and Ericsson Pin Hopes on the Platform - GigaOM http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-894940 STMicro and Ericsson Pin Hopes on the Platform - GigaOM Wed, 20 Aug 2008 12:54:59 +0000 http://gigaom.com/?p=14150#comment-894940 [...] STMicroelectronics and equipment maker Ericcson this morning, all you need to know is that making wireless chips is no longer enough. The emphasis is shifting beyond the individual radios on a chip, to a platform that contain as [...] [...] STMicroelectronics and equipment maker Ericcson this morning, all you need to know is that making wireless chips is no longer enough. The emphasis is shifting beyond the individual radios on a chip, to a platform that contain as [...]

]]> By: iPhone Daily Briefing - 2008.07.14 | raven.me http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-894455 iPhone Daily Briefing - 2008.07.14 | raven.me Sun, 17 Aug 2008 16:59:26 +0000 http://gigaom.com/?p=14150#comment-894455 [...] 3G, iPhone Atlas, Ben Wilsom How and Why the iPhone Changes The Game, HaveMacWillBlog, Robin Bloor How iPhone Could Resurrect Wireless Chip Makers, GigaOM, Stacey Higginbotham Two days of iPhone line-waiting: a sordid tale, Ars Technica - [...] [...] 3G, iPhone Atlas, Ben Wilsom How and Why the iPhone Changes The Game, HaveMacWillBlog, Robin Bloor How iPhone Could Resurrect Wireless Chip Makers, GigaOM, Stacey Higginbotham Two days of iPhone line-waiting: a sordid tale, Ars Technica - [...]

]]> By: 4G Ascendant - Great time to be an equipment supplier? « Platform Shift http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-891328 4G Ascendant - Great time to be an equipment supplier? « Platform Shift Wed, 30 Jul 2008 20:48:45 +0000 http://gigaom.com/?p=14150#comment-891328 [...] and substantial backend data capacity.  Not to mention the boon for their suppliers (such as chipmakers) who will also benefit from this [...] [...] and substantial backend data capacity.  Not to mention the boon for their suppliers (such as chipmakers) who will also benefit from this [...]

]]> By: Sajal Dogra http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-891047 Sajal Dogra Tue, 29 Jul 2008 08:13:58 +0000 http://gigaom.com/?p=14150#comment-891047 Not really a resurrection. More like higher ASPs and fatter gross margins going forward. Before the iPhone, there was a race to the bottom. Cranking out lower cost chip solutions at the lowest possible price point (for the ultra-low-cost market). Now there is a sudden rush for high-end smartphones. These would require higher content, higher margin chips. From that perspective, a smartphone uptick is good for wireless chip makers. *Chip makers have a chance to escape rapid commoditization by differentiating on the basis of multi-mode solutions, power consumption, multimedia feature sets, GPS/bluetooth integration, etc. Strong smartphone demand driven by carrier subsidies should fuel high-volume shipments in these high end chipsets. Second sourcing may not be that easy for the handset manufacturers, at least for the next year or two. Smart phone IC commoditization is at least 2-3 years away. *The iPhone’s $199 price tag also points toward handset price erosion for manufacturers like Nokia and Samsung. *We might be through with the memory correction, and it’s unlikely the semiconductor component pricing would decline like it has in the past. These three data points lead me to believe that pure play handset manufacturers are looking at sharply lower gross margins over the next few quarters. Not really a resurrection. More like higher ASPs and fatter gross margins going forward. Before the iPhone, there was a race to the bottom. Cranking out lower cost chip solutions at the lowest possible price point (for the ultra-low-cost market). Now there is a sudden rush for high-end smartphones. These would require higher content, higher margin chips. From that perspective, a smartphone uptick is good for wireless chip makers.

*Chip makers have a chance to escape rapid commoditization by differentiating on the basis of multi-mode solutions, power consumption, multimedia feature sets, GPS/bluetooth integration, etc. Strong smartphone demand driven by carrier subsidies should fuel high-volume shipments in these high end chipsets. Second sourcing may not be that easy for the handset manufacturers, at least for the next year or two. Smart phone IC commoditization is at least 2-3 years away.
*The iPhone’s $199 price tag also points toward handset price erosion for manufacturers like Nokia and Samsung.
*We might be through with the memory correction, and it’s unlikely the semiconductor component pricing would decline like it has in the past.

These three data points lead me to believe that pure play handset manufacturers are looking at sharply lower gross margins over the next few quarters.

]]> By: cell phone amplifiers http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-890436 cell phone amplifiers Fri, 25 Jul 2008 16:40:18 +0000 http://gigaom.com/?p=14150#comment-890436 [...] chips for the envy-inducing device. The big winner is Infineon with four chips, including GPShttp://gigaom.com/2008/07/14/chips-and-the-3g-iphone/When Nature Calls: Cell Phones Ring OwlsMIT researchers are USING cell PHONES TO COUNT OWLS. They've [...] [...] chips for the envy-inducing device. The big winner is Infineon with four chips, including GPShttp://gigaom.com/2008/07/14/chips-and-the-3g-iphone/When Nature Calls: Cell Phones Ring OwlsMIT researchers are USING cell PHONES TO COUNT OWLS. They’ve [...]

]]> By: More Radios on Fewer Chips - GigaOM http://gigaom.com/2008/07/14/chips-and-the-3g-iphone/#comment-889721 More Radios on Fewer Chips - GigaOM Tue, 22 Jul 2008 04:00:51 +0000 http://gigaom.com/?p=14150#comment-889721 [...] fact there are too many radios, especially on high-end devices. And it’s only going to get worse in coming years as 4G networks using LTE or WiMAX [...] [...] fact there are too many radios, especially on high-end devices. And it’s only going to get worse in coming years as 4G networks using LTE or WiMAX [...]

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