Report: 3G Modem Makers Shipped 20 Million Units in '08

Fueled by operators’ aggressive pursuit of new data service offerings, makers of 3G modems saw increased demand in 2008, shipping 20 million total units in the year, a Scottsdale, Arizona-based IT market research firm is reporting today.

 

Officials at In-Stat also say that Ericsson and Qualcomm led the move from factor to USB modems. By 2011, In-Stat (News - Alert) analyst Daryl Schoolar says, embedded shipments will overtake external modem shipments. That’ll lead to dropping prices for clients, especially in western Europe, where Huawei is a major player, according to Schoolar.

 

“Clearly, here is an instance where CAPEX investments in good times are paying dividends in lean years,” says Schoolar said. “Operators continue to move forward with their mobile data subscription initiatives even as the economy suffers. This has put cellular modem manufacturers in a really nice place to be.”

 

And makers of 3G modems (such as the Sony Ericsson (News - Alert) MD300, shown at right) aren’t the only members of IT’s wide mobile-enabling sector that are doing well.

 

Generally speaking, as TMCnet has reported, and in part because of the slower economy, mobile solutions are emerging as a strong cost-saver.

 

As TMCnet reported recently, Waterloo, Ontario-based Research In Motion Limited has announced a 7.9 percent increase in revenues, to $2.78 billion, for the quarter ended Nov. 29. The figure marks a 66.3 percent increase from the year-ago quarter for the BlackBerry (News - Alert) smartphone makers, who say that the company shipped about 6.7 million smartphones during the three-month period.

 

Another company, Movero Technology, Inc. – an Austin, Texas-based group that offers Web-based mobile management – told TMCnet during an interview recently that its services are growing in demand among businesses as cost-savings in this economy become more vital.

 

In yet another recent interview, Chris Kozup (News - Alert), senior manager of mobility solutions at Cisco Systems Inc., told TMCnet that even during an economic downturn, businesses should make it a priority to ensure adequate wireless coverage, invest in device management and invest in wireless security.

 

“Wireless technologies can help enable a truly mobile business, where employees can access resources and increase productivity without the limitations of physical location,” Kozup said. “Even during an economic downturn, IT will continue to receive requests to support an increasing wave of wireless devices and a demand for access to applications to those devices.”

 

Officials at In-Stat appear to agree.

 

In their $3,500 report, titled “Shifting to Embedded: 2008 Worldwide Cellular Modem Market,” analysts with the firm say that the external modem market hit its peak in 2010 when revenues top $2.6 billion.

 

“USB has become the dominant form factor, overtaking PC cards in annual shipments in 2008,” In-Stat reports.