Friday, November 20, 2009

Over 60% of Internet-connected mobile devices sold will be through carrier channels by 2013, says In-Stat

By 2013, over 60% of all the Internet-connected mobile devices sold will be through carrier channels, according to In-Stat.

Carriers are becoming a significant channel for all Internet-connected mobile devices, including netbooks and mobile PCs, because of the revenue potential of the associated services. In-Stat anticipates that the number of devices sold through the carriers will continue to increase as services are bundled for multiple devices and service prices decrease due to increased bandwidth from new communications technologies and increased competition between carriers.

"In the US, carriers are charging up to US$60 per month for a two year contract with the subsidized purchase of a netbook," says Jim McGregor In-Stat analyst. "While the subsidy costs the carrier US$50-100, it generates US$1,440 or more in service fees over the life of the contract."

Carriers in the Europe and Asia are also offering netbooks with a data contract, but typically at lower prices than in the US. As a result of the recent success of selling netbooks, carriers are now venturing into offering notebook. Carriers in Asia have been offering MIDs and UMPCs for some time.

According to In-Stat, the total available market (TAM) for Internet-connected devices is projected to grow at a 22.3% compound annual growth rate (CAGR) through 2013.

Nearly 31% of notebooks will be sold through carriers in 2013, and 78% of Internet-connected devices will be using processors with integrated multimedia acceleration, including 85% of mobile PCs, by 2013, the research firm added.

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