According to In-Stat New Features Help Drive Cell Phone Chip Revenues.

SCOTTSDALE, Ariz. -- Cellular handsets, one of the largest product categories of semiconductor consumption in the world, continue to enjoy significant sales growth and add new features, reports In-Stat (http://www.in-stat.com). In 2007, total revenue from handset semiconductors will exceed $31 billion worldwide, the high-tech market research firm says. According to an In-Stat consumer survey, one of the more popular cell phone features is Bluetooth, with users from wireless operators across the board requesting it.

"The features that appear in cellular handsets are an interesting mix of consumer wants, cellular operator revenue opportunities, and semiconductor manufacturing abilities," says Allen Nogee, In-Stat analyst. "If a feature is fairly expensive to produce, a handset manufacturer may include it in a few high-end models to test the market. At the other end of the spectrum, some features are so cheap, such as digital cameras, that cell phone manufacturers include them in many models at the operator's request. These features enable more consumers to use more revenue-generating services such sending digital photos over wireless networks."

Recent research by In-Stat found the following:

* Handset semiconductor revenue will reach $32.2 billion by 2012.

* Add-on semiconductors, like Bluetooth and GPS, are growing at a faster rate than core handset components.

* The average selling price (ASP) of core semiconductors in an HSPA handset will drop from $60.72 in 2006 to $14.61 in 2012.

The research, "Worldwide Handset Semiconductor Forecast: 2006-2012" (#IN0703848WT), covers the worldwide market for cell phone semiconductors. It provides forecasts of handset semiconductors worldwide, with breakouts by cellular technology, and by add-on auxiliary semiconductors. The research also presents the results of a primary research study of cell phone users in the U.S.

For more information on this research or to purchase it online, please visit:

http://www.instat.com/catalog/wcatalogue.asp?id=3, or contact a sales representative:

http://www.instat.com/sales.asp

The price is $3,495 (US).

About In-Stat

Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's experienced staff and in-depth research to support critical business, product and technology decisions. In-Stat's insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Regular and ongoing end-user demand and primary research surveys underpin much of the analysis, enabling In-Stat to provide incisive market knowledge and guidance on future market opportunities via syndicated research products, custom consulting, and advisory services.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.