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Smartphone accessories seen to turn in profit for OEMs

Posted: 02 Apr 2013 ?? ?Print Version ?Bookmark and Share

Keywords:smartphone? Bluetooth? power sensor? OEM?

According to the latest data from ABI Research, while shipments for smartphones have reached more than 40 per cent of all handsets, the shipments of aftermarket smartphone accessories account for 56 per cent of accessory shipments and 64 per cent of revenues.

"With a large portion of the accessory ecosystem focusing on smartphones, handset and accessory OEMs are looking to make their accessory products 'smart' in an attempt to differentiate, extend brand, and increase revenues," stated senior analyst, Michael Morgan. Presently, the smart accessory ecosystem is dominated by health and fitness applications that are leveraging a combination of the GATT profile in Bluetooth v4.0 and low-power sensors.

ABI Research said that leveraging the processing and software capabilities inherent in mobile devices in combination with hardware products will open a new vector for accessory OEMs looking to create differentiated accessory products. Furthermore, research into smart accessory products indicates that adding 'smart' capabilities to accessories can increase product ASPs by 30-100 per cent over non-smart versions of the same product.

Smart accessories pose challenges for accessory OEMs who tend to have limited electrical engineering and software engineering skillsets. However, the need to differentiate their products and meet the challenge from new product innovations will eventually force many accessory OEMs to learn on the job. This new technology vector for accessories also poses an opportunity for IC vendors looking to expand their reach beyond the mobile device and handset market.





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