Frost & Sullivan: Advanced Applications of Smartphone Continue to Keep its Demand

LONDON, July 1 /PRNewswire/ -- The smartphone market is experiencing robust growth, despite the economic downturn. Consumers are increasingly seeking well-designed devices with innovative features and applications such as touch screen technology, wireless fidelity (Wi-Fi) and location-based service (LBS). As it appears that, in the next couple of years, software will play a major role in the mobile handset market, mobile operators are likely to collaborate with significant participants from the Internet community, the media and the entertainment industry, to further boost the appeal of advanced handsets.

"The smartphone market will remain highly fragmented in the next five years," says Frost & Sullivan Senior Industry Analyst, Saverio Romeo. "Although traditional participants across the smartphone value chain will continue to dominate the market, there will be more collaboration between consumer electronic device manufacturers, and new technology vendors will be the trendsetters in the mobile market."

Consumer need for ultimate converged devices, in support of multiple functionalities such as touch screen, camera/video support, dual simcard provisions, Wi-Fi and integrated GPS, is anticipated to fuel the demand for smartphones. Furthermore, social media and Internet communities as well as application developers are likely to gain control and eminence in the wireless and mobile market, resulting in more collaboration across the value chain. Innovation, combined with product differentiation, will prove to be one of the most prominent factors in achieving significant growth.

However, falling average sale prices will continue to influence the revenue growth rate of this market. Additionally, diversified operating system (OS) platforms, intense competition among smartphone manufacturers and poor battery life of smartphones to support multiple access technologies will affect the smartphone market in the next 4-5 years.

"Users are moving towards a complex and rich mobile experience made of communication, entertainment and productivity services. The smartphones are the right devices for this experience. Their role will increasingly become vital in the mobile communications market driving diffusion of new services and applications," concludes Mr Romeo.

If you would like to receive more information on this study, please send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, and contact details.

The Race of Smartphones

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