IHS: 525M SMARTPHONES TO SHIP WITH FINGERPRINT SENSORS IN 2017

(The following is a reformatted version of a press release
issued by IHS Inc. and received via e-mail. The release was
confirmed by the sender.) 
Apple Spurs Massive Growth in Smartphone Fingerprint Sensor
Market 
El Segundo, Calif. (Nov. 4, 2013)--As it has done so often
before, Apple Inc. is triggering a new technology boom, with its
integration of a fingerprint sensor on the iPhone 5s inspiring a
wave of imitators that will drive the market for fingerprint-enabled smartphones to soar in the coming years. 
A total of 525 million smartphones with integrated fingerprint
sensors will ship in 2017, up from 45.7 million this year,
according to the MEMS and Sensors Service at IHS Inc. (NYSE:
IHS). Shipments this year will surge by a factor of 10 from a
volume of 4.5 million in 2012. 
“Fingerprint scanning for security, authentication and other
purposes has always been a conceptually attractive solution in
smartphones,” said Marwan Boustany, senior analyst, MEMS and
Sensors, for IHS. “However, cost, size, performance and
reliability issues have prevented fingerprint sensors from
attaining widespread adoption. With the introduction of the
iPhone 5s, Apple has overcome these challenges and has offered a
fingerprint sensor solution that delivers seamless
functionality. Now that Apple has shown the way, competitors are
in a race to enter the market with similar systems, propelling
rapid growth in the coming years.” 
A one-of-a-kind market 
Cellphone makers long have recognized the security risks
associated with smartphones. Owing to the ubiquity of
smartphones in daily life, they now contain a great deal of
sensitive data in a form factor that is easy to steal. Users
likewise are employing them for more and more activities over
time, which means that more personal data is being stored on the
devices. 
Fingerprint sensors have been used in handsets as far back as
2000, first employed in a cellphone sold by Sagem. Other
cellphone brands that offered fingerprint sensors include
Fujitsu, Pantech, LG and Motorola. 
Early implementations of fingerprint sensors often weren’t
reliable, with dead skin interfering with accuracy. These
sensors also required users to swipe their fingers, and often
failed if the swipes were too swift or at the wrong angle. This
was an issue across both laptops and handsets. 
Apple’s fingerprints are all over this technology 
However, Apple moved to solve these problems with the
acquisition of AuthenTec in 2012. AuthenTec’s technology forms
the basis of the seamless implementation of fingerprinting by
the 5s, yielding a sensor that eliminates the need for a swipe
and that can also be elegantly integrated into the iPhone’s home
button. With the horsepower from the 64-bit applications
processor of the 5s, the performance of the phone’s fingerprint
sensor is very fast. 
Everyone’s got their own fingerprint 
The arrival of the 5s is triggering a wave of new fingerprint-enabled smartphones that follow Apple’s design lead. This is a
familiar pattern in the smartphone and tablet markets, where
Apple has spurred major market growth for technologies including
touch screens, motion sensors and microelectromechanical system
(MEMS) microphones. 
New fingerprint-enabled phones at present include HTC’s One Max,
the Konka k5 Van Gogh and the Pantech Vega Secret Note. 
IHS expects leading smartphone brand Samsung to roll out
fingerprint-enabled smartphones in 2014. Together with Apple,
Samsung is likely to drive most of the volume in the smartphone
market, leading to the half-billion unit shipments forecast in
2017. 
Fingerprint technology will be initially limited to high-end
smartphones before migrating to the mid-end. This will likely
remain the case until the close of the forecast due to cost
issues, IHS predicts. 
“The increasing awareness of security and the high value of data
in handsets--combined with the convenience of solutions and the
‘me-too’ effect among OEMs--will serve to promote the usage of
fingerprint sensors in handsets, along with other biometric
technologies,” Boustany said. 
Checking for fingerprints 
Smartphone brands now are working with a currently small group
of fingerprint technology suppliers to develop their own
solutions. 
These suppliers include Validity Inc., which was bought by
Synaptics in 2013; IDEX; and Fingerprint Cards AB. Fingerprint
Cards already has design wins in handsets from Pantech and
Konka, and is also working with optical and biometric trackpad
supplier CrucialTec. 
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: + 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
About IHS (www.ihs.com) 
IHS (NYSE: IHS) is the leading source of information, insight
and analytics in critical areas that shape today’s business
landscape. Businesses and governments in more than 165 countries
around the globe rely on the comprehensive content, expert
independent analysis and flexible delivery methods of IHS to
make high-impact decisions and develop strategies with speed and
confidence. IHS has been in business since 1959 and became a
publicly traded company on the New York Stock Exchange in 2005.
Headquartered in Englewood, Colorado, USA, IHS is committed to
sustainable, profitable growth and employs approximately 8,000
people in 31 countries around the world. 
(sgp) NY 
#<278855.14078.3.9.1.0.76>#
 
 
Press spacebar to pause and continue. Press esc to stop.