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Mobile broadband market boosted by tablet shipments

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Sales of tablets in 2011 will boost shipments of mobile broadband devices that provide high speed wireless connectivity by 57.8% according to research by IHS iSuppli.

The analyst projects shipments of mobile broadband devices will climb to 157.9million units, up from 100.1m in 2010 and represents strong growth for the second year in a row. According to IHS, shipments will continue to rise for the next few years, but at a lower rate, declining to 38.1% in 2012 and gradually trending downward until 11% percent in 2015 to approximately 350.7m units. The five-year compound annual growth rate, computed from the starting year of 2010, stands at 28.5%. Within the segment, says IHS, tablets will represent the fastest growing mobile broadband device this year with shipments projected to reach 58.9million units, up 239.3% from 17.4m in 2010. Francis Sideco, principal analyst for wireless research at IHS, said: "More than any wireless device, media tablets - exemplified by the best selling iPad from Apple - appear to be at the forefront in boosting mobile broadband. Affecting everything from supply ecosystems to chipset design, to services, applications and business models, tablets are spurring innovation not just in the wireless sector but also across multiple industries." Sideco noted that media tablets are influencing every node of the value chain, including suppliers, device manufacturers, mobile network operators, third party applications and service suppliers. In the supply node of the value chain, for instance, tablets impact not only how core chipsets and architectures are designed but also how chipset strategies are implemented and then marketed. "The excitement surrounding tablets is primarily due to the virtually unlimited range of value added services and applications that may be delivered through tablets because of their wireless networking capability," Sideco said. "Whether tablets have built in Wi-Fi or come with embedded 3G/4G chips, the wireless function of tablets enables them to transcend just merely being another cool gadget into a virtual storefront, with the potential to generate revenue for any number of downstream businesses and industries."