US : Smartphones and wireless data cards have become extremely popular with end users globally and these segments will show phenomenal growth rates in terms of both revenues and units shipped. The growing popularity of smartphones among consumers increases revenues for all mobile device manufacturers.

New analysis from Frost & Sullivan, Global Mobile Handheld Device Market, reveals that the market earned revenues of $127.8 billion in 2006 and estimates this to reach $152.5 billion in 2012.

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Smartphones became instrumental in reversing the previously negative growth trend in the global market for mobile devices.

"Besides the uptake of smartphones, replacement and upgrade sales in more developed markets and expansion of new subscriber base in developing mobile markets will drive global market growth," cites Frost & Sullivan Strategic Analyst Daniel Longfield. "Wide-spread commercialization of 3G devices in 2006 and beyond also expects to aid in the favorable growth of this market."

The market for mobile devices has become a mature one with many participants. This causes the market to have low profit margins as there are more than enough economical substitutes for the products that one vendor manufactures. Hence, many market participants have a dramatic downward pressure on average selling prices.

Average price per unit dropped over 15 percent year on year in the mobile handset market. The drop in prices was due to increased competitors as total devices sold actually increased dramatically at over 20 percent in 2006.

Although smartphones accounted for less than 10 percent of total units shipped worldwide, they constituted nearly 15 percent of the total revenues. This was possible because smartphone's average selling prices have become more than double that of feature phones. Vendors should produce more smartphones and also cultivate end-user capabilities with smartphones and their applications to increase revenues.

Smartphones and wireless data cards present large growth opportunities for mobile handset vendors. They became critical to wireless carriers and premium content value chain participants as they enable consumers to purchase more products and services increasing revenues for all market participants.

"Despite being small, the wireless data card market displays brisk growth in revenue and units and has probably the brightest future of all the market segments, even better than that of smartphones," notes Longfield. "As wireless carriers upgrade network capacity, price for wireless data services are likely to reduce, thereby further driving wireless data card sales."

This also provides a growth platform for laptop providers as internal or embedded solutions offer an opportunity to increase the commodity value of the laptop, thereby potentially increasing profit margins.

Global Mobile Handheld Device Market is part of the Mobile and Wireless Growth Partnership program, which includes research services in the following markets: device manufactures, wireless software developers, wireless carriers, wireless premium content, wireless enterprise or mobile business, and location-based services. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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