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Handheld market depends on multimedia features
Posted on 10-Aug-2004 07:47. | Tags Filed under: News.

Handheld market depends on multimedia features
According to a upcoming report from Jon Peddie Research, the mobile market is hot -- intensely hot growth and even hotter competition among a sea of suppliers. There is obvious and sustained growth in the handheld and PDA segments overall. Significant growth will be concentrated in a few product categories and user segments. Unfortunately success will elude many designers and suppliers. The winners will field the right mix of new and enhanced capabilities. The magic combo of winning features will draw first-time customers into the handheld market and inspire existing customers to upgrade. This dynamic landscape is captured and analyzed in a new 500-page report from Jon Peddie Research, entitled "Handheld Multimedia Devices: A Report on the Semiconductors and IP Enabling Multimedia on Handhelds and Phones."

Building on their groundbreaking work in graphics and multimedia hardware and software, the research firm is focusing its expertise on the complex and rapidly evolving handheld/handset market. JPR reports that shipments of handhelds/handsets will be strong but not even across the main segments or geographies as new devices taking advantage of coprocessors and new powerful SoC (System on Chip)-based devices enter into the market.

By the end of 2005, the multimedia or "smart" phone segment will have grown to 50% of all mobile phones. However, as the report points out, some companies may be in for a very rough transition. The JPR study predicts that mobile phone media accelerator semiconductor sales will hit a peak of $404 million in 2006. However, today's 29 semiconductor suppliers will be reduced to only six by 2008. Initially handset suppliers of multimedia phones will use multimedia accelerator coprocessors to satisfy time-to-market demands. Inevitably the market will transition to system-on-chip designs, which will include multimedia acceleration. The Peddie report predicts that chip consolidation will lead to market consolidation. As the technology is assimilated, many businesses will fail or be acquired by the bigger players.

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