News
Issue #2002 - 40 (October 2002)
(Updated Oct. 22, 2002)

MARKET OUTLOOK & TRENDS

Color Displays to Fuel Surge in Wireless Handset & PDA Market

Source: News story written by Mala Nugehally, special to MobileInfo.Com

In-Stat/MDR predicts a surge in growth of the wireless handset and PDA market. According to reports, it is the availability of color displays and not Bluetooth capabilities or other technological advancements like higher data speeds and location-based services that will fuel the demand for newer handsets and PDAs. The market, which was practically stagnant for the past 18 months, can see a higher spurt of growth if added to the color displays, manufacturers can improve battery life and also reduce the price of handsets by 50%. In-stat/MDR expects virtually all displays to be color by 2008 and predicts a CAGR of 36% in the period 2002-2006.

This does not go to say that there will be no hurdles to succeed in this high-growth market. "For many manufacturers, unfortunately, the road to prosperity will have a few speed bumps," says Ray Jodoin, Director of Wireless Research with In-Stat/MDR. The only question is whether there is enough short-term capacity to fill the initial demand, which currently exceeds 1 million color displays per month in Japan alone."

Other barriers to entry include the battery life and cost per handset. If manufacturers can overcome the problems of excess power consumption of the backlight, the extra power consumed by color displays when compared to their monochrome counterparts can still be accommodated. Backlight illumination is also the cause of the high cost of color displays, US$56-72 when compared to US$7.00-$12.00 for backlight assembled monochromes. While Japanese and Korean manufacturers have taken steps towards replacing their monochrome handsets with color displays, the complexity of the manufacturing process and backlight issues will stall others from following suit.

MobileInfo Comments and Advisory: This is good news for the handset vendors. They need any reason for consumers to upgrade. Cameras, color displays, bells, whistles - whatever it takes will help. Alas, we are sorry to remind that battery technology is not keeping pace with increased power requirements of these features. Are VCs and academic institutions doing R&D listening? 

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.