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Multimedia (music & video) Handset Market Report, 2006

Published: Jan/2007

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Multimedia handset refers to handset is capable of obtaining and handling various kinds of data including text, graphics, image, animation, audio and video, in addition to voice service.

Composition of Multimedia Phone



The handset industry has undergone three typical stages in its development, characterized by the upgrading of multimedia functions. At least another two upgrading stages are expected in the near future. Handsets will gradually transfer from communication tool into multimedia terminal.

Development Stages of Multimedia Handsets



The former three technology progress has reshaped the image of handset as simply a communication device. The multimedia elements constantly flow in and the function of entertainment has been highlighted subsequently.

At the beginning of 2001, as chord ring tones have satisfied consumer's psychological needs, then a competition heat for chords occurred and this upsurge lasted all through 2003. Samsung chord phone made a great success then. Meanwhile, a huge market for downloading ring tone has been created.

In 2002, the display screen of handset upgraded constantly. STN was gradually replaced by TFT and CSTN. Besides, the image performance of handset was further improved, so another sales peak appeared in handset industry. At the same time, the mobile value-added market featured by image + ring-tone started expanding rapidly.

In 2003, the debut of camera phone caught mass attention. Thanks to the hot sales of camera phones, a competition of camera module upgrading occurred in 2004. However, as the entertainment function of camera phone (photos) failed to perform as widely as ring tone downloading, plus other factors, consumers became less interested in camera phone.

In early 2005, the handset market turned calm except for the highlights from ultra-thin phones like MOTO V3. At this time, MP3 handset emerged in the market and some foreknown handset manufacturers took the lead to launch MP3 handset. From then on, music has been dug out as a potential demand of consumers.

Nearly all of the mainstream manufacturers joined in the development army for music handset in the year of 2006.

Obviously, the progress of handset technology won't stop here. As a matter of fact, a new starting point is just in front of us. IC technology makes the functions of chip more diversified, moreover, its dimension is becoming smaller and smaller, which will directly lead to the appearance of completely new consumer electronics such as DV handset, TV handset, game handsets, and etc.

Classification of Multimedia Handsets



Multimedia is no longer the obvious feature of high-end handset but the standard configuration for mainstream handset in the future for the cost of these functions is becoming much lower, and any consumer is able to afford it once it is lower than USD 10 dollars.



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