Fabless ecosytems spurs a mobile technology revolution worth trillions

[DCM]

A new report from BCG and Qualcomm highlights the massive economic impact of mobile technologies.

The impact of mobile communications generally requires thinking in trillions: industry revenues of almost $3.3 trillion worldwide in 2014. Documented annual consumer economic benefit of more than $6.4 trillion, and GDP impact of more than $1.4 trillion. And $1.8 trillion invested in the last five years, virtually all from the private sector.
The impact has been driven by innovators in mobile IP and by a fabless ecosystem able to rapidly deliver the silicon optimized for mobility.

Emerging market consumers place an incredibly high value on mobile relative to their income. In China and India, the consumer-reported value of mobile exceeds 40 percent of average income. The majority of people surveyed were willing to give up dining out or going on vacation for a year in order to keep their mobile phone. In China and Korea, a majority of users would give up a subscription to home broadband Internet rather than go without a mobile phone.

Its also a compelling story of how innovation in technology has led to massive private sector investment in infrastructure: the mobile industry has invested nearly $2 TRILLION in its infrastructure buildout and R&D in the past 5 years. And the industry will likely spend another $4 TRILLION in the next 5 years. I can't find another industry that has financed that level of infrastructure buildout for the global economy. Innovation has been key: the companies are willing to finance build the new mobile networks, since they are dramatically better than what they replace. 4G is 16,000 times faster than 2G, for example. Innovation creating the business case for massive capital spending by the private sector on a massive scale—this is a dynamic which needs to be better understood. BUT there is the risk that regulators hinder this going forward, via regulation that crimps innovators and makes standard-setting more difficult.

See:
The trillion dollar windfall from mobile - Computer Business Review
https://www.bcgperspectives.com/con...gy_business_transformation_mobile_revolution/

 

[Daniel Nenni]

Excellent read, thank you! That is one of the reasons I wanted to write the book about the fabless semiconductor ecosystem, to let people know how we got to where we are today. Our next book will be on mobile and how it evolved from a semiconductor standpoint. I really think it is an important story to tell.

I remember my son asking me to attend career day at his school, he was 10yo at the time. He then asked me what my career was! He had no idea. After explaining semiconductors to him he asked if I could talk about airplanes instead (I'm also a pilot). Good thing I did talk about airplanes because the other Dad was a Fireman giving out stickers and talking about saving lives blah blah blah. I talked about aerodynamics and helped them make stunt paper airplanes and won the day.

If I get another chance at career day I will just hold up a smartphone and say "I helped change the world, any questions?"

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[hist78]

In recent years because a volunteer position, I have many chances to talk to young people (6 ~ 20). One of the situation (I won't say a problem) is less and less of them are interested in science and engineering or want to be someone who can invent something. Many of them want to be working as the person in charging moving money or buying companies as shown in the movies or TVs. It can be only my personal experience though.

 

[Pawan Fangaria]

It's true, that's the effect of TVs and movies enticing young children into believing getting big things so easily. Add smartphones into their hands to do most of the things on internet, Facebook
They can do more than what we do on smartphone, but ask them about what goes inside making those smartphones, they will get bored. My daughter kept clinging on my phone for most of the time, until I bought one exclusively for her!

 

[Paul McLellan]

The mobile industry has been the fastest growing industry ever. Nothing comes close. More people can and do use a mobile phone than a pencil or a toothbrush. And it is the largest industry in terms of units and maybe the largest overall (automotive in total is much lower in units but each one costs about 20 or 50 iPhones).