HomeNewsNews Details
News Details
Date: 18-10-11

ASP pressure on M2M embedded modules due to China factor, says ABI

ABI Research has reported the M2M embedded module market's performance was less than anticipated for 2011, with the module industry as a whole earning only about $500 million in the first half of the year. This less than stellar revenue is largely due to an increase in the speed of ASP decline in the industry, finds ABI.

"3G module pricing, particularly for WCDMA and CDMA EV-DO, fell sharply, with WCDMA declining 46% and CDMA EV-DO declining 26%," says Sam Lucero, practice director, M2M connectivity, ABI Research. "Other principal causes for decline are the increased competition from Chinese module vendors and new programs from certain mobile operators to supply customers with very cost-optimized 3G modules, such as AT&T's '3G Connect' program."

ABI says this market is consolidating by a string of mergers and an acquisition with the most recent being u-blox's acquisition of Fusion Wireless. This acquisition brings together Thalwil, Switzerland-based u-blox's GSM-family module business with Fusion Wireless' CDMA-family module offerings. Other recent mergers and acquisitions over the past few years include Sierra Wireless acquiring Wavecom in 2009, Gemalto's acquisition of Cinterion Wireless Modules in June 2010, and Novatel Wireless obtaining Enfora in November 2010.

For more information visit: www.abiresearch.com

Default user
Related News