The market for mobile accessories will be worth $81.5 billion this year and will grow to $101 billion in 2020.
That’s according to market research company ABI Research, which said that protective cases, chargers, screen protectors and headsets are the most sold accessories for mobile phones.
But amongst those categories, the headset market will grow the fastest in terms of revenues, while sales of Bluetooth headsets are also increasing.
The biggest market for these accessories is Asia Pacific, which accounts for 52.9 percent of all accessory shipments, ABI said.
Within Asia Pacific, China has the biggest potential for growth because of its already large and growing customer base, a fast growing online market, and increasing disposable incomes.
Marina Lu, a research analyst at ABI, said that a protective case is a necessity because of the thinness and lightness of smartphones, while wireless charging and digital payment features will also help push this sector of the market.
Even though Intel turned in a whopping loss in its mobile unit of $4.2 billion last year, it hasn’t totally decided to throw in the towel on its strategy.
According to analysts at market intelligence firm Digitimes Research, by subsidising its Chinese partners it has created a pretty big supply chain and shipped 46 mobile CPUs last year.
While Intel is keeping its head low on the mobile front this year, the analysts at DR believe that there will still be solid business in China this year.
That’s particularly so because its supply chain is in place and the Atom X3 SoFIA which Intel has designed with its Chinese partner appears to have some traction in the marketplace.
Last year, Intel leaned on Asus to support its Android smartphone line but it appears that this year it is relying on Chinese unbranded, “white box” companies to keep its shipments buoyant.
A research document claims that Intel’s SoFIA 4G application processor will now be delayed until the beginning of next year.
Apparently, according to Digitimes Research, the design of the chip is ready and could be rolled out in vast quantities tomorrow. But there’s problems with the software, it appears.
That means, according to the report, that Intel will have to rely on its SoFIA 3G chips to satisfy its rather few mobile customers that choose the chip giant as a supplier.
And there’s more trouble on the horizon, the analysts suggest.
The SoFIA 4G chip will be built using a 28 namometre process and if it is true that it is delayed until next year, that may well put a spanner in the works for a 14 nanometre application processor that was planned for next year.
Intel has at least two big problems on the mobile front. The first is that handset vendors, despite subsidies, aren’t that willing to be in the gentle hands of the behemoth. The second is that the chips it does make for the mobile market are way too pricey, probably because, above all, Intel is a manufacturing company with the concomitant high costs.
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