Application processor market to reach $4 bln in 2007 before heading downward

Application processors provide wireless handsets with multimedia features, such as digital imaging, mobile audio and ringtones, TV quality video, gaming, global positioning system (GPS), wireless LAN, and mobile digital TV. This market, driven by the global explosion in smartphones and other high-end portable devices, has grown rapidly from small beginnings. In 2007, application processor revenue is expected to be nearly $4 bln, with unit shipments at nearly 298 mln. But within two years, two factors will begin to exert downward pressure, ABI Research says.