Dual-Mode Cellular/Wi-Fi Handset Shipments to Double from 2008 Through 2010

Published on: 15th February 2009

Shipments of Wi-Fi-enabled cellular handsets will double in volume by the end of 2010, compared to January 2008, and that growth curve is expected to continue through 2013. This data, contained in a new ABI Research study, shows how driven by increasing consumer awareness and demand, new operator business models, and increased value for handset manufacturers, Wi-Fi technology will continue to penetrate deeper into mobile handsets over the next five years.

Industry Analyst Michael Morgan comments, "This past year there has been an explosion of Wi-Fi capable phones. Due to operator and customer demand, and handset manufacturers trying to deliver more product value, Wi-Fi is quickly becoming ‘table stakes' for smartphones."

The user's experience appears to be critical in handset Wi-Fi adoption. While Nokia leads the market in Wi-Fi-enabled handsets due to the sheer volume of its portfolio, Wi-Fi models only represent a small fraction of the range. In contrast, every Apple iPhone has Wi-Fi, and due to its ease of use and the seamless iTunes experience, more iPhone users - as many as 75% -- are using their Wi-Fi regularly. Contrasting again, HTC's handset lineup is 80% Wi-Fi-equipped, but only 10% of its users are employing the Wi-Fi capability.

Despite the rosy outlook, Morgan cautions, there are challenges to Wi-Fi's growth. "One obstacle is the glacial pace of IEEE standardization in the areas that address voice over Wi-Fi usage. Another is the growing carrier interest in femtocells. While they have their problems, femtocells do provide an alternative to improving in-building coverage without the need for Wi-Fi capable handsets. Although Wi-Fi access points are already installed in many homes and business, the carriers may ultimately push to have femtocells installed at these key locations.

In Wi-Fi's favor: as flat rate data plans increase, wireless operators can leverage Wi-Fi capable handsets to offload data intensive applications, improve in-building coverage, and offer new services to new markets.

 

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