Intel and Nokia Partnership Revolutionizes Embedded Wireless Internet Connectivity

Strategic Insights -

Intel and Nokia's partnership to offer embedded wireless internet connectivity in laptops has sent shockwaves through the market, changing the outlook for embedded cellular modems in portable computers and hitting the share prices of competing wireless modem makers. The partnership will bring an embedded HSDPA Mini-card modem to the market, accelerating the growth of cellular connectivity in notebooks and paving the way for the eventual inclusion of WiMAX wireless broadband. According to ABI Research, this partnership marks a significant shift in the market, with embedded modems expected to make up nearly 17% of the total market this year, increasing steadily over time.

Key Takeaways:

  • The partnership between Intel and Nokia will result in the production of an embedded HSDPA Mini-card modem, driving growth in cellular connectivity in notebooks.
  • The eventual goal is to offer multiple connectivity options, including WiMAX wireless broadband, marking a significant shift in the market.
  • Cellular modems for laptops come in two form-factors: PC cards and embedded modems, with embedded modems expected to make up 17% of the total market this year.
  • The market for cellular PC cards and embedded modems in laptops is expected to grow from $1 billion in 2006 to nearly $3 billion in 2010, driven by increasing shipments and declining ASPs.
  • The majority of growth in this market will be seen in North America and Western Europe, driven by high penetration of laptop computers and willingness to pay for Internet access fees.
  • Vendors such as Option NV, Novatel, Sierra Wireless, and Sony Ericsson will see significant revenue growth due to higher shipment volumes and a greater proportion of 3G modems.
  • The market for embedded modems will continue to grow steadily, with ASPs declining gradually through the forecast period.

Statistics:

  • The partnership between Intel and Nokia is expected to result in 17% growth in embedded modems market share in 2008.
  • The total market for cellular PC cards and embedded modems in laptops is expected to reach $3 billion in 2010.
  • The market is expected to grow from $1 billion in 2006 to nearly $3 billion in 2010, driven by increasing shipments and declining ASPs.
  • The majority of growth in this market will be seen in North America and Western Europe, with laptop penetration and Internet access fees driving growth.
  • Vendors such as Option NV, Novatel, Sierra Wireless, and Sony Ericsson will see 100% revenue growth in 2008 due to higher shipment volumes and a greater proportion of 3G modems.

Sources:

  • ABI Research's "Mobile Broadband to the Laptop" study, available at http://www.abiresearch.com/products/market_research/Mobile_Broadband_to_the_Laptop
  • ABI Research Services: Mobile Broadband, available at http://www.abiresearch.com/products/service/Mobile_Broadband_Research_Service
  • ABI Research Services: Mobile Devices, available at http://www.abiresearch.com/products/service/Mobile_Devices_Research_Service
  • ABI Research, founded in 1990 and headquartered in New York, offers global operations supporting annual research programs, intelligence services, and market reports in various industries.