According to IHS iSuppli ’s wireless communications market research report, smartphones and tablets are becoming increasingly popular among consumers, and this year will boost the operating income of mobile communications products and wireless infrastructure equipment by 29%.
It is estimated that the overall operating income of the mobile communication equipment market will reach 335.6 billion US dollars in 2011, higher than 2010's 259.9 billion US dollars. This year's growth rate will exceed 19% in 2010, and it will be at least the highest growth rate in the years before 2015. It is estimated that the operating income in 2015 will exceed 500 billion US dollars, as shown in the figure below.
IHS believes that as the holiday sales season begins, 3.5G and 4G devices such as Apple's iPhone and iPad will continue to promote growth in this area. More importantly, the data consumption demand created and triggered by these products and various other mobile communication devices will have a profound impact on the overall wireless ecosystem and promote all aspects of development, from chipset innovation to infrastructure expansion and Building upgrade.
3G mobile phones account for 44% of the overall market, with sales of US $ 149 billion. In 2011, it was still the largest field in the mobile communications equipment industry. Last year, 3G mobile phones surpassed 1G and 2G mobile phones and won the largest market share in one fell swoop. But the fastest growing field this year is not 3G mobile phones, but other fields. Tablet PC sales surged 217% from last year to US $ 36.5 billion; 4G mobile phone sales increased by 187% to US $ 4.6 billion.
In the next few years, 3G mobile phones will continue to occupy the largest share of the mobile device operating revenue market, and its operating revenue will begin to decline from 2015. By 2013, the 4G standard (LTE) will account for the largest proportion of infrastructure expenditures of wireless operators in developed countries. In 2015, global operators ’infrastructure spending on LTE will increase from US $ 2.05 billion in 2010 to US $ 36.4 billion. At that time, the market will favor manufacturers that can provide cost-effective and scalable solutions, It must be able to provide the high speeds required by the next generation of wireless standards.
The key factor for the future success of manufacturers will be the ecosystem relationship created through mergers and acquisitions and strategic partnerships. In the first three quarters of this year, there were several very sensational transactions involving industry giants, including Nokia's alliance with Microsoft, Google's acquisition of Motorola Mobile and AT & T's acquisition of T-Mobile. The value and effect of these actions have yet to be tested by time. IHS predicts that the above mergers and acquisitions and alliances will determine the growth potential of related companies in the next three to four years.
For emerging regions, the number of users will definitely continue to grow strongly, especially in markets such as China, India, South Asia and Africa. However, most of this growth will come from rural areas and new users buying entry-level or low-cost mobile phones, mainly for voice communications. Therefore, mobile phone manufacturers will need to prepare both mobile phones for the low-end and high-end markets to maximize their growth potential.
Overall, operating revenues in most areas of the mobile communications equipment market will grow strongly this year, with only 1G and 2G handsets and wireless LAN customer access market revenues falling. In addition to media tablets, 3G and 4G mobile phones, other growth areas in 2011 were mobile phone battery chargers, gray market mobile phones and some mobile broadband and wireless access devices, such as base stations, routers, mobile hotspots and USB dongle.
The semiconductor market for mobile communications will also achieve considerable growth in 2011, and it is expected that operating revenue in this area will reach $ 69 billion, an increase of 15.5% over last year ’s $ 59.7 billion.
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