Evolving business models for the mobile cellular and related semiconductor industry

The shift in function of mobile terminals from voice-only towards data/multimedia applications, fuelled by dramatic reductions in semiconductor real estate utilization, and thereby cost, is causing schisms in the industry, which is simultaneously globalising. The process of change is modelled and examplified for the case of a 3G-multimedia cellular terminal. New opportunities for aspirant ODMs (original design manufacturers) who can take up entire product designs on behalf of the more established OEMs (original equipment manufacturers) exist. Complexities in 3G systems will be a mitigating factor but silicon suppliers are stepping into the breach.