The first generation of 3G UMTS (W-CDMA plus GSM) handsets introduced in Europe have high complexity and high estimated manufacturing costs according to analyses conducted at Portelligent. In this Strategic Analysis, Portelligent uses data on the NEC e606, Motorola A830, and Nokia 6650 to support comparisons between UMTS and CDMA2000 handsets. A comparison is also performed that employs a 2.5G handset supporting the EDGE protocol as a baseline in calculating a "3G premium" which reflects the incremental complexity and cost of UMTS handsets at present.
Among the first generation handsets Portelligent analyzed, the Nokia 6650 demonstrates a higher integration level and lower estimated costs than the other products. This report also briefly discusses the design approach of the 6650.