Wanted: Multimedia Handsets

Consumer Desires Meet Operators ARPU Needs

Published Date: November 2007
Author: Frank Dickson
Phone: 480-308-0902
Email: frank@multimediaintelligence.com
Pages: 60
Report #: MMI070401MM

Multimedia has become the term of the day as wireless service has expanded beyond voice to include
a variety of communication, data, and entertainment services. The “phone” has expanded into a multi-
use device that changes its utility based on use. The result is a momentous transition in the wireless
industry:

Voice services are maturing and suffering under increasing price pressure.

Operators are leveraging data services to sustain revenue growth and offset declining voice
ARPU (Average Revenue per User).

Handset manufacturers race to support industry demand for increasingly feature-rich
multimedia handsets, while controlling handset cost and power consumption.

“Wanted: Multimedia Handsets—Consumer Desires Meet Operators ARPU Needs” provides

research, analysis and forecasts for multimedia handsets and handsets with multimedia specific
features such as music phones, phones with touch screens, camera phones, mobile TV handsets, radio
phones, and phones with a host of alternative connectivity options. The report begins by looking at
the wireless industry trends that
Multimedia Handsets Unit Shipments
are driving the need for feature
rich handsets. It then looks at 200
basic multimedia handsets and Developing
World
their growth. It turns its attention
to feature rich multimedia
handsets, including the Developed
technology driving them, unit World

forecasts and revenue outlook.

Finally, it examines and forecasts
handsets with specific multimedia
features.

For Sales Inquiries, please contact:

Elaine Gonzalez
0
Strategic Sales Director 2006 2007 2008 2009 2010 2011
480-277-0071
Asia Pacific Western Europe North Amercia Emerging Asia EEMEA Latin America
Elaine@multimediaintelligence.com

© 2007 Multimedia Intelligence - MMI070401MM

www.multimediaintelligence. com
 Table of Contents
Executive Summary ________________________________________________________ 1
Introduction_______________________________________________________________ 3
Wireless Industry Trends ____________________________________________________ 5
Transition to Data Services and Content ____________________________________________ 5
Multiple Levels of Network Convergence ___________________________________________ 6
The Mobile Internet Transforms the Competitive Ecosystem ___________________________ 7
Voice Is Becoming a Data Application Through UMA and VoIP ________________________ 7
Mobile Advertising & More Data Applications_______________________________________ 7
Subscriber Growth Shifts to Developing Countries and Regions_________________________ 8
Handsets with at Least Basic Multimedia _______________________________________ 9
Technology behind the Basic Features _____________________________________________ 10
ARM ______________________________________________________________________________ 10
Broadcom __________________________________________________________________________ 11
CEVA _____________________________________________________________________________ 12
Freescale Semiconductor_______________________________________________________________ 12
Neomagic __________________________________________________________________________ 13
Qualcomm__________________________________________________________________________ 14
ST Microelectronics __________________________________________________________________ 15
Texas Instruments (TI) ________________________________________________________________ 16
ViMicro____________________________________________________________________________ 21
Vivace Semiconductor ________________________________________________________________ 22
Zoran______________________________________________________________________________ 22
Handsets with Today’s Multimedia Functionality________________________________ 24
Image Capture_______________________________________________________________________ 24
Audio _____________________________________________________________________________ 24
Video Playback ______________________________________________________________________ 24
Java _______________________________________________________________________________ 25
USB ______________________________________________________________________________ 25
Bluetooth___________________________________________________________________________ 26
Screen Colors _______________________________________________________________________ 26
Screen Resolution ____________________________________________________________________ 26
WAP ______________________________________________________________________________ 26
MMS______________________________________________________________________________ 26
Samples of MultiMedia Handsets _________________________________________________ 27
Motorola’s RAZR ____________________________________________________________________ 27
Nokia 6233 _________________________________________________________________________ 28
Sony Ericsson K790i__________________________________________________________________ 29

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 The Latest for Q4 2007 _________________________________________________________ 29
Multimedia Handset Trends ____________________________________________________________ 29
Verizon Wireless_____________________________________________________________________ 30
Verizon Wireless Juke by Samsung ____________________________________________________ 31
The Venus by LG __________________________________________________________________ 31
The BlackBerry Pearl 8130 Smartphone_________________________________________________ 31
The Voyager by LG ________________________________________________________________ 31
Vodafone___________________________________________________________________________ 31
Vodafone Featured Multimedia Handsets________________________________________________ 33
T-Mobile ___________________________________________________________________________ 33
Multimedia Handset Forecast________________________________________________ 35
Unit Forecast__________________________________________________________________ 35
Revenue Forecast ______________________________________________________________ 36
Regional Outlook ______________________________________________________________ 37
A Note about Smart Phones with Multimedia Features _______________________________ 38
Handsets with High End Multimedia Functionality ______________________________ 40
Segmentation by Functionality_______________________________________________ 42
Music Phones ____________________________________________________________ 43
Camera Phones ___________________________________________________________ 44
Phones with Color Screens __________________________________________________ 46
Phones with Touch Screens ______________________________________________________ 47
Phones with Mobile TV_____________________________________________________ 48
Phones with FM Radio _____________________________________________________ 50
Phones with GPS__________________________________________________________ 52
Phones with Connectivity Options ____________________________________________ 53
Phones with Wi-Fi _____________________________________________________________ 54
Phones with Bluetooth __________________________________________________________ 55
Phones with USB ______________________________________________________________ 56
Phones with IrDA______________________________________________________________ 57
Methodology _____________________________________________________________ 58

© 2007 Multimedia Intelligence - MMI070401MM

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 List of Tables
Table 1. Common Display Resolutions........................................................................................................ 26
Table 2. Listing of Multimedia Handsets..................................................................................................... 27
Table 3. Vodafone Global handset range highlights................................................................................... 32
Table 4. Multimedia Handset Unit Shipments by Region (2006 – 2011)................................................... 38

List of Figures
Figure 1. Segmentation by Class of Handset, Units in Millions__________________________________ 2
Figure 2. Hierarchy of Wireless Needs _____________________________________________________ 4
Figure 3. Basic Multimedia Handsets Annual Worldwide Shipments ___________________________ 10
Figure 4. Freescale Semiconductor’s i.MX27 Block Diagrams _________________________________ 13
Figure 5. TI’s Application Processor Roadmap _____________________________________________ 16
Figure 6. TI’s OMAP3430 Applications Processor __________________________________________ 17
Figure 7. TI’s OMAP 2430/2431 Application Processors _____________________________________ 18
Figure 8. TI’s TCS2315 LoCosto ULC GPRS Solution_______________________________________ 21
Figure 9. Zoran’s Approach 5C__________________________________________________________ 23
Figure 10. Basic Multimedia Handsets Annual Worldwide Shipments_________________________ 35
Figure 11. Worldwide Multimedia Handset Unit Shipments and Shipments as a % of the Total____ 36
Figure 12. Worldwide Annual Retail Multimedia Handset Revenue and ASP___________________ 37
Figure 13. Multimedia Handset Forecast without “Smart Phone” Category ____________________ 39
Figure 14. High-End Multimedia Handset Unit Shipments __________________________________ 41
Figure 15. Segmentation by Class of Handset, Units in Millions_______________________________ 42
Figure 16. Worldwide Music Phone Shipments____________________________________________ 43
Figure 17. Camera Phone Units Shipments Worldwide _____________________________________ 45
Figure 18. Worldwide Phone Shipments With Color Screens by Resolution ____________________ 46
Figure 19. Worldwide Phone Shipments with Touch Screen _________________________________ 47
Figure 20. Worldwide Phone Shipments that are Mobile TV Enabled _________________________ 49
Figure 21. Worldwide Handset Shipments with FM Radio __________________________________ 51
Figure 22. Worldwide Phone Shipments with GPS _________________________________________ 52
Figure 23. Mobile Phone Connectivity Options ____________________________________________ 53
Figure 24. Worldwide Phone Shipments that are Wi-Fi Enabled _____________________________ 54
Figure 25. Worldwide Phone Shipments that are Bluetooth Enabled __________________________ 55
Figure 26. Worldwide Phone Shipments that are USB Enabled ______________________________ 56
Figure 27. Worldwide Phone Shipments with IrDA ________________________________________ 57

© 2007 Multimedia Intelligence - MMI070401MM

www.multimediaintelligence. com
Companies Mentioned in the Report
Adobe J-Phone Sharp
Amoi Lauterbach Datentechnik SK Telecom
Apple Lenovo Sony
Arima LG Sony Ericsson
ARM LG Electronics Spreadtrum
BenQ LightSurf ST Microelectronics
BlackBerry Magma Symbian
Broadcom MediaFlo USA Synopsys
Cadence Mentor Graphics TCL
Carl Zeiss Microsoft Telefonica
CECT Microsoft Texas Instruments
CEVA MontaVista Software Texas Instruments
Chipnuts Motorola T-Mobile
DivX Neomagic Tokyo Tsushin Kogyo
EoNex Ningbo Bird Verizon Wireless
Ericsson Nokia VIA
eSol NXP ViMicro
Express Logic O2 Vivace Semiconductor
Freescale Palm Vodafone
Freescale Semiconductor Panasonic Zoran
Green Hills Software QNX Software Systems ZTE
Haier Qualcomm
Hisense Renesas
HTC RIM
Huawei ROHM
Infineon Sagem
InterDigital Samsung

© 2007 Multimedia Intelligence - MMI070401MM

www.multimediaintelligence. com