Falling ASPs to Help Drive Bluetooth Technology in Lower Tier Handsets

Shipments of Bluetooth ICs in mobile handsets are expected to rise through 2013, as average selling prices (ASPs) for Classic Bluetooth ICs are projected to fall over 40% during the same period, reports IMS Research.

The forecast ASP erosion, attributed to technological improvements and increasing economies of scale, gives handset manufacturers more flexibility with regard to including Bluetooth technology in designs for lower cost handsets. "Bluetooth technology is already viewed as a standard feature for many handset users," commented IMS Research analyst, Chris Schreck. "Falling Bluetooth IC prices allow handset manufacturers to provide that feature in a larger number of lower tier handsets, where competitive prices demand a lower cost of materials."

This increased penetration of Bluetooth technology in handsets is good news for the market as a whole. Bluetooth IC suppliers will have the opportunity to compensate for lower revenues once they begin producing the higher cost Bluetooth high speed ICs in 2009. Likewise, shipments of other devices equipped with Bluetooth technology, such as headsets, will receive a boost from the growing device environment.

Posted to the site on 14th January 2009