Falling WiMAX Chipset Prices Spell Good News for Adoption of Smaller Mobile Devices, Says ABI Research

The WiMAX chipset market is advancing quickly. There are solid 2-chip designs consisting of a single-chip baseband IC and a single-chip RF IC that are bringing power consumption down. Beceem, GCT Semiconductor, and Sequans have single-chip designs that include both the baseband and RF. Most importantly, WiMAX chipset ASPs are dropping rapidly.

“Even as the mobile WiMAX chipset market has barely gotten its feet wet, chipset ASPs are declining rapidly due to heavy competition and greater integration in designs,” says ABI Research principal analyst Philip Solis. “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. These falling WiMAX chipset prices are critical for inclusion of the technology in smaller mobile devices.”

Even when global subscriber numbers reach the high tens of millions, ABI Research expects chipset shipments to 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 connectivity features. In addition, some WiMAX subscribers will have multiple WiMAX-enabled devices on one subscription plan.

“WiMAX will look a bit like Wi-Fi in terms of rapid ASP declines and moves towards 100% penetration in laptops,” continues Solis. “Expansion into various mobile devices including Mobile Internet Devices and consumer electronics will be critical to the growth of the WiMAX chipset market.”

A new ABI Research study, “The WiMAX Chipset Market” (http://www.abiresearch.com/products/market_research/WiMAX _Semiconductors) examines chipset vendors’ activities and products. Forecasts include shipments and revenue by a variety of segmentations including device CPE, mobile devices by type, region, main frequency band, and 802.16e/16m.

It forms part of the firm’s Wireless Semiconductors Research Service (http://www.abiresearch.com/products/service/Wireless_ Semiconductors_Service) which also includes other Research Reports, ABI Insights, an ABI Vendor Matrix, and analyst inquiry support. (Due to the length, the above URLs may need to be copied/pasted into your Internet browser’s address field. Remove the extra space if one exists.)

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call +1.516.624.2500.

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