Articles
World Laptop And Mobile Computing Markets - Realities Of Limited Broadband Wireless Adoption
April 20, 2009
This Frost & Sullivan research service titled World Laptop and Mobile Computing Markets - Realities of Limited Broadband Wireless Adoption provides a discussion and quantification of the world wireless broadband Internet access market. The markets are discussed with a world focus and are segmented by region, with an emphasis on the U.S. market, which is the largest national market for the base year 2007. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: wireless air cards, laptops, notebooks, ultra mobile personal computers, desktops, servers, and ruggedized computing solutions.
Market Overview
Laptop and Notebook Mobile Computing Market Eats into the Desktop Computer Market
Laptops, with their more advanced computing solutions, are increasingly replacing desktop computers. In fact, in 2007, laptops outstripped desktops for the first time in terms of revenue due to a higher average sale price (ASP). Frost & Sullivan believes this first could be followed by another in 2009, when laptop unit sales will exceed that of desktops globally. This trend is expected to be sustained until 2014. The ruggedized mobile computer market is also likely to find the going good due to significant demand from specialized enterprise vertical markets.
Despite this optimism in the market, laptop or notebook computer vendors must guard against the reduction in ASP. The laptop market, like many electronics or technology markets, continues to see severe erosion in price points. The ASP for laptops or notebook computers has been dropping by high single-digit percentage points every year. 'In 2005, the average sale price for a laptop was $1,289.60 and in 2008 it had dropped to $1,007.20 – a 21.9 percent decline in price in three years,' says the analyst of this research. 'Laptop manufacturers must focus on economies of scale, customer feedback/requirements, and tactical cost management to maintain profit margins in a market with intense global competition and eroding price stability.' However, these reduced prices have made laptops more affordable and many households, students, and businesses are turning to laptops.
The higher uptake of laptops has been a blessing for wireless broadband vendors, since their solutions have been acknowledged as productivity boosters by enterprise laptop users. Nevertheless, adoption of wireless broadband access through laptops or notebooks is restrained by high service costs, traditional wireline Internet service, and wireless fidelity (WiFi) hotspots. Wireless broadband vendors can offset these issues by highlighting external broadband wireless solutions' ability to help enterprises maintain several subscriptions for a larger number of employees, allowing wireless access to be targeted on a situational basis.
'Meanwhile, Gobi modules by Qualcomm enable laptops to access both major common wireless networks as well as global system for mobile communications (GSM) and code division multiple access (CDMA), enabling consumers to purchase broadband wireless service-ready laptops,' notes the analyst. 'End users will also be able to switch carriers more easily; the threat of churn will push carrier pricing down and drive adoption.'
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Broadband wireless
- Laptop/notebook mobile computing
- Laptop/notebook operating system market
- Ruggedized mobile computing solutions
- Technologies
The following technologies are covered in this research:
- EVDO and HSDPA
- Wireless WiMax and WiFi
- Long-term evolution (LTE)
- Solid state
SOURCE: Frost & Sullivan
