ABI: Falling WiMAX (IEEE 802.16) Chipset Prices Spell Good News for Adoption of Smaller Mobile Devices
August 4, 2008 // Published as a news service by IHS
The worldwide interoperability for microwave access (WiMAX) - IEEE 802.16 - chipset market is advancing quickly, according to ABI Research.
There are solid two-chip designs consisting of a single-chip baseband integrated circuit (IC) and a single-chip radio frequency integrated circuit (RFIC) that are bringing power consumption down, analysts said.
Beceem, GCT Semiconductor and Sequans have single-chip designs that include both the baseband and RF.
Most importantly, the average selling price of WiMAX chipsets is dropping rapidly.
According to ABI Research principal analyst Philip Solis, chipset average selling prices are declining rapidly due to heavy competition and greater integration in designs.
"Prices for the baseband and RF components of the chipset have come down from the $35 range a few years ago to below $25, and will drop below $10 in 2011," Solis said. "These falling WiMAX chipset prices are critical for inclusion of the technology in smaller mobile devices."
Even when global subscriber numbers reach tens of millions, analysts said chipset shipments will be well into the hundreds of millions. Many devices will include WiMAX capabilities well before users subscribe to WiMAX-based service plans, and some consumers may never utilize the WiMAX capabilities included in their equipment as more devices start to include other wireless wide area network (WWAN) connectivity features.
In addition, analysts said some WiMAX subscribers will have multiple WiMAX-enabled devices on one subscription plan.
Solis said WiMAX will look a bit like Wi-Fi (IEEE 802.11x) in terms of rapid average selling price declines and moves toward 100% penetration in laptops. "Expansion into various mobile devices including mobile Internet devices and consumer electronics will be critical to the growth of the WiMAX chipset market," he said.
Source: ABI Research.