Mark Donahue Mark Donahue is an associate editor for Telephony magazine. Previously, he worked in The Associated Press’ Chicago bureau, as well as two trade publications. He graduated from...more

Over 60% of Internet-connected Mobile Devices Sold Will be Through Carrier Channels by 2013


Jim McGregor, Chief Technology Strategist

E-mail:; Phone: (480) 609-4554

Elaine Potter, Marketing Coordinator

E-mail:; Phone: (480) 483-4441

Over 60% of Internet-connected Mobile Devices Sold Will be Through Carrier Channels by 2013

SCOTTSDALE, Ariz., November 18, 2009 – Carriers are becoming a significant channel for all Internet-connected mobile devices, including netbooks and mobile PCs, because of the revenue potential of the associated services. Market research firm In-Stat ( anticipates that the number of devices sold through the carriers will continue to increase as services are bundled for multiple devices and service prices decrease due to increased bandwidth from new communications technologies and increased competition between carriers. By 2013, In-Stat anticipates that over 60% of all the Internet-connected mobile devices sold will be through carrier channels.

“In the US, carriers are charging up to $60 per month for a two year contract with the subsidized purchase of a netbook,” says Jim McGregor In-Stat analyst. “While the subsidy costs the carrier $50–$100, it generates $1,440 or more in service fees over the life of the contract.”

Carriers in the EU and Asia are also offering netbooks with a data contract, but typically at lower prices than in the US. As a result of the recent success of selling netbooks, carriers are now venturing into offering notebook PCs. Carriers in Asia have been offering MIDs and UMPCs for some time.

Recent research by In-Stat found the following:

• The total available market (TAM) for Internet-connected devices is projected to grow at a 22.3% compound annual growth rate (CAGR) through 2013.

• 78% of Internet-connected devices will be using processors with integrated multimedia acceleration, including 85% of mobile PCs, by 2013.

• In-Stat projects that nearly 31% of notebooks will be sold through carriers in 2013.

• The innovation of the mobile market is being driven by four key factors: richer content, network access for communications and content, increased bandwidth to enable this access, and new technologies.

The research, “Mobile Graphics & Multimedia Review: Integration Still Has Its Challenges” (#IN0904446SI), covers the worldwide market for mobile graphics and multimedia silicon. It includes:

• Examination of mobile multimedia hardware and software solutions

• Standards & proprietary platforms impacting multimedia acceleration.

• Identifies how media-rich Internet content, increased communication bandwidth, and new technologies drive both innovation in multimedia acceleration and the mobile device market.

• Forecast of Market Value TAM of Silicon Functions in Mobile Devices Using Merchant Market Processors through 2013, and PC Forecast for Integrated & Discrete Graphics through 2013.

For a free sample of the report and more information, please contact a sales representative:

To purchase it online, please visit:

The price is $3,995 (US).

This research is part of In-Stat’s Mobile Technologies service, which analyzes the technologies that are enabling and changing the next generation of mobile devices, including processors, graphics, modems, GPS, displays, memory, storage, and human interfaces.

This report is one of three reports focused on the critical elements of mobile devices. The series also includes:

Mobile Processor Review, #IN0904447SI, August 2009

Mobile Baseband Review, #IN0904449SI, to be released soon

Related In-Stat research:

Worldwide Smartphones

Future Cellphones: Leveraging Building Blocks for Better Experience

Mobile Device Update: MIDs & UMDs Face Challenges

Wireless Delivery of Digital Content Propels E-Book Adoption

Worldwide PMP/MP3 Player Shipments


About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.

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