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Smartphone Shipments to Take Off in 12 to 18 Months

27th August ,2004

Europe : As better devices and lower prices combine with other factors to fuel growth and meet demand, smartphone shipments are set to rise dramatically over the next five years, reports In-Stat/MDR. According to the high-tech market research firm, smartphone shipments will experience a 44% Compound Annual Growth Rate (CAGR) over the next five years.

However, the big breakout period for these products is still about 12 to 18 months away. Yet, according to Neil Strother, a Senior Analyst with In-Stat/MDR, "This doesn't mean that this year is not an important one. As this segment builds there are many things worth knowing in order to take advantage of these business opportunities." Some of the reasons why smartphones are taking off include smaller form factors, falling prices on select devices, better integration of voice, e-mail and Personal Information Manager functionality, a growing variety of devices, and increasing demand from business users looking for integrated voice and data devices.

However, this segment does face some hurdles, such as price, size, lack of 3G networks, battery life, and security concerns. But, Strother is optimistic, "Most of these hurdles can, and will, be solved, and the smartphone's best days are just around the corner."

A recent report from In-Stat/MDR also finds that:

-- In a recent survey of users, only 9% had a smartphone.

-- In the same survey, Sprint PCS respondents showed the greatest willingness to pay more for a smartphone as their next wireless phone.

-- Symbian-based smartphones will dominate over the next 5 years. Microsoft's platform will be second by 2006.

The report, "Smartphones Rising: 10 Things You Should Know About This Segment", includes end-user opinions about smartphones, a five-year shipment forecast, a regional breakdown of smartphone shipments and smartphone OS market shares.

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