ABI: Don't Forget the Memory 4 Greater Profits than Headsets

According to ABI Research, removable memory cards will top $7
billion in revenue in 2007. Memory cards will continue to be the
highest revenue-generating mobile phone accessory category over the
next five years. Meanwhile, headsets, both wireless and wired, will
generate about $5 billion. 

LONDON - September 26, 2007

Memory Cards Will Replace Headsets as the Highest Revenue-Generating Mobile Phone Accessory Category in 2007

from shipments of removable memory cards for handsets is expected to be
over $7 billion in 2007, compared with $5 billion expected from headset
shipments including both Bluetooth and wired headsets, according to a
recent study from ABI Research. Memory cards will continue to be the
highest revenue-generating mobile phone accessory category over the
next five years.


Research industry analyst Shailendra Pandey says, "With few exceptions,
memory cards for handsets are bought by users separately from the
handset purchase, whereas an increasing number of headsets are now
being supplied inbox with the handsets."


handset vendors only provided wired headsets, but now even Bluetooth
headsets are being presented inbox with the handsets. Therefore,
greater aftermarket sales of memory cards versus increasing inbox sales
for headsets are resulting in stronger growth and higher revenue from
memory cards when compared with headsets."


recent announcement by Nokia, Samsung, Sony Ericsson, Spansion,
STMicroelectronics, Micron Technology, and Texas Instruments of support
for the creation of the UFS (Universal Flash Storage) specification for
use in mobile phones, digital cameras, and other CE devices is likely
to fuel the rapid growth of the memory card market. The UFS standard,
expected to be finalized in 2009, will provide a unified memory
solution for embedded memory and removable memory cards -- eliminating
the need to have adaptors for different memory card formats.


the coming years," adds Pandey, "a greater number of handset
accessories (including memory cards) will be supplied inbox as handset
vendors recognize that to boost sales of high-end, feature-rich mobile
phones and smartphones, they need to offer accessories that allow users
to benefit fully from the multimedia features in those handsets."


Research expects the market for mobile phone accessories to grow
steadily in the next five years, generating over $80 billion in revenue
in 2012. The continuing innovation and further advancements in
technology -- coupled with the increasing desire of customers to
personalize their handsets -- bode well for the future of the market.


ABI Research's recent study "Mobile Phone Accessories" examines
the market landscape and future potential for inbox and aftermarket
mobile phone accessories. It discusses the various types of
accessories, features and pricing, suppliers, and vendor market share
analysis for key accessories.


This study forms part of two ABI Research services: Mobile Devices and Short-Range Wireless,
which include a variety of Research Reports, Research Briefs, Market
Data, Online Databases, ABI Insights, ABI Vendor Matrices, and analyst
inquiry support.


in 1990 and headquartered in New York, ABI Research maintains global
operations supporting annual research programs, intelligence services,
and market reports in broadband and multimedia, RFID & contactless,
M2M, wireless connectivity, mobile wireless, transportation, and
emerging technologies.  For information, visit www.abiresearch.com,