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Wireless Communication Module Industry Chain

Nov. 30, 2018

Wireless communication module such as NB-IoT Module industry chain:

Upstream: raw materials such as baseband chips, with a high degree of standardization;

Downstream: The various sub-application areas are extremely fragmented. Often, the middle of the communication distribution agency sales flow to various fields;

The module provider purchases upstream materials, is responsible for design and sales, and outsources production to third-party processing plants.

Upstream: Baseband chip (communication chip) is the core, accounting for about 50% of material cost, and has high technical barriers. The main suppliers are Qualcomm, Intel, MediaTek, Rideco, Huawei, ZTE, etc., with high concentration and strong voice.

In the downstream, the application is extremely extensive and extremely fragmented. According to the size of the application market, it is divided into large particle market and small particle market. The large-particle market's IoT module such as QCA1023 QCA9377 China has a large amount of products, high standardization, and fierce competition. It is suitable for making large revenues and establishing brands. R&D personnel can be relatively small, but market development capabilities are strong; small particle market IoT modules are small and customized. The degree is high and the gross profit margin is high, but the investment in suppliers is high.

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China Wireless Network Products Supplier