“With few exceptions, memory cards for handsets are bought by users separately from the handset purchase, whereas an increasing number of headsets are now being supplied inbox with the handsets,” says Shailendra Pandey, ABI Research industry analyst.
“Earlier handset vendors only provided wired headsets, but now even Bluetooth headsets are being presented inbox with the handsets. Therefore, greater aftermarket sales of memory cards versus increasing inbox sales for headsets are resulting in stronger growth and higher revenue from memory cards when compared with headsets,” she adds.
The growth is also likely to be fueled by the recent plan to support a new industry standard for memory cards, the Universal Flash Storage (UFS). Seven companies are currently backing the UFS: Nokia, Samsung, Sony Ericsson, Spansion, STMicroelectronics, Micron Technology, and Texas Instruments. The new standard is expected to be finalized in 2009.