USB Modems Outselling Embedded Modules by More than 3:1: ABI Research

Embedded module shipments are less likely to exceed USB modem shipments over the then five years as things have changed dramatically in the wireless broadband market, says market analyst firm ABI Technology.

It means the global economic slowdown has had an impact on the future growth of embedded modem modules as clients got lengthened upgrade and replacement buying cycles. What changed the game here is the advancing innovation. With economies continuing to improve, more devices have started offering embedded modem connectivity, providing more incentive for clients to buy an embedded device in other words than an external USB modem.

"Media tablets had a significant positive impact on embedded module shipments last year, with Apple coming out as the new leader for 3G modules," noted ABI Technology senior practice director Jeff Orr. "Nevertheless embedded modules will likely falter this year as the tablet vendors look to drive prices down by foregoing add-ons including 3G/4G modems."

The latest report from the innovation firm provides market share and shipment forecast data for WWAN modems providing IP data connectivity for portable and mobile computing and consumer electronics devices. This edition offers a full-year 2010 review of the mobile broadband modems and routers for the PC and CE markets.

In other news, Apple's iPad commanded 85 percent of the market for media tablets in 2010, according to full-year figures reported by ABI Innovation. The tablet market surged in the second half of the year, however it wasn't just tablets: according to senior practice director Jeff Orr, "Device categories including netbooks and mobile broadband-enabled eBook Readers showed gains in year-over-year shipment numbers in 2010. The hype that media tablets were displacing portable computers and dedicated CE device purchases simply didn't become a reality."