Abstract
Overview
The smart card competitive market is undergoing dramatic transition. The
growing demand for open platforms, particularly Java cards, and the need for
interoperability have given rise to independent Java OS companies that have an
impact on the smart card value chain.
The advent of companies that provide interoperable operating systems has
created an opportunity for silicon vendors to push themselves up the value chain
into the smart card manufacturer territory leading to possible competition with
their own clients.
Smart card manufacturers are also moving into services whilst maintaining
their positions in software and proprietary operating systems in order to expand
their offerings. Today, all traditional card manufacturers have some form of
service offering.
2002 was a tough year for smart card manufacturers. Though most companies had
an increase in volumes, all suffered revenue declines compared to 2001 due to
fierce competition in the low-end SIM market. Prices of SIM cards dropped by 25
to 30 percent in 2002, due to decreased demand from telecom operators and
oversupply in the low-end SIM card market.
This was in spite of the increase in unit shipments, over 2001, in the GSM
market. Greater demand for higher memory SIM cards was experienced globally as
the shipments of 32K and 64K cards improved in 2002.
The global smart card subscription enables companies to make informed
decisions in order to capitalize on existing opportunities in the market. Frost
& Sullivan information is kept current through revisions and constant
contact with industry participants, in order to afford clients with up-to-date
trends, insights, and market measurements of the world markets.
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