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Smartphone, mobile telecom hardware trends and EMS opportunity

By VentureOutsource.com Staff

Greater complexity emerging in networks (multiple spectrum bands, many techniques for enhancing capacity such as carrier aggregation/VoLTE) and increased software content – and likely to be seen – the ability to explore new service business models, reports investment bank UBS following the last GSMA Mobile World Congress (MWC) which shattered all attendance records.

Many suppliers in the mobile infrastructure industry cited significantly increased customer engagement. So, its not surprising MWC experienced greater operator attendance.

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China, in particular, seems to be even more upbeat in terms of capital expenditures for the industry for 2015.

In terms of engagement by smartphone users, the chart below presents monthly data usage per active smartphone user by region for key developed areas already above 1 gigabyte per month per user. UBS estimates this should continue to rise over time with increased digitization and connectivity in our everyday environments.

Monthly data traffic per active smartphone (GB)

Gigabyte Usage per Region

EMS / ODM opportunity
Service providers offering electronics manufacturing services (EMS) and original design manufacturing (ODM) can benefit from obtaining greater depth of understanding 5G technology and embrace that high-end smartphone manufacturers and telecom hardware infrastructure carriers have/are moving to optical image stabilization (OIS) and to 16-megapixel / 20-megapixel reverse-side cameras with more features added.

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UBS feels the 5G hype cycle is just now beginning. Mobile telecom standardization is likely to gain momentum in 2016 through 2017 ahead of commercialization taking place in 2020.

Other trends UBS sees in the pre-5G wave include the use of multiple antennae technology and significantly more aggressive use of ultra-dense networks (small cells).

Geographically UBS writes the European players appear to have lost the technology lead to Korea, US and China in 4G.

 




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