Smartphones Will Dominate by 2008 - Report

A migration trend is emerging among wireless users toward feature rich devices that incorporate color screens and advanced data and messaging applications, including navigation, multimedia messaging (MMS), and instant messaging, among others.

The primary catalysts of this trend are a combination of factors. For one, wireless handset penetration continues to grow, moving the market from one characterized by initial penetration to that of replacement with next generation devices. Secondly, wireless operators are under increased pressure to drive higher average revenue per subscriber (ARPU) and are doing so by adding data services and "infotainment" content available to newer technology handsets.

"With handset makers and wireless operators developing new devices and compelling services, the replacement cycle will shorten, accelerating growth in the handset," states Kenil Vora, an analyst with ABI. "Key to maintaining this growth is the successful deployment - and timing - of feature-rich devices and related services."

According to a new study by Allied Business Intelligence (ABI) the number of replacement handsets shipped will grow from 211 million in 2002 to 591 million units in 2008, representing nearly 85% of all shipments worldwide at that time.

The new study, also indicates that, of the estimated 406 million handsets shipped in 2002, only about 15% incorporated color displays. This number is expected to jump to 97% by 2008."

Posted to the site on 9th January 2003