Over 60 percent of Internet-connected Mobile Devices Sold Will be Through Carrier Channels by 2013

(Top News, 19 Nov 2009)

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. Market research firm 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. By 2013, In-Stat anticipates that over 60 percent of all the Internet-connected mobile devices sold will be through carrier channels.

“In the US, carriers are charging up to $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 $50–$100, it generates $1,440 or more in service fees over the life of the contract.”

Carriers in the EU 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 PCs. Carriers in Asia have been offering MIDs and UMPCs for some time.

Recent research by In-Stat found the following:
• The total available market (TAM) for Internet-connected devices is projected to grow at a 22.3% compound annual growth rate (CAGR) through 2013.
• 78% of Internet-connected devices will be using processors with integrated multimedia acceleration, including 85% of mobile PCs, by 2013.
• In-Stat projects that nearly 31% of notebooks will be sold through carriers in 2013.
• The innovation of the mobile market is being driven by four key factors: richer content, network access for communications and content, increased bandwidth to enable this access, and new technologies.