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.
Frost & Sullivan Growth Partnership Service
Based on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivan's GPS includes:
- Assisting companies to reach their full potential in the core business
- Providing growth strategies to help companies expand into related businesses
- Preemptively redefining the core business during market turbulence
- Applying the Frost & Sullivan framework to identify and address common mistakes resulting from misaligned corporate strategies
- Recommending growth management strategies through continuous partnership
To maximize the potential for growth within a firm's internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan's strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients' growth.