Devices & Platforms

Smartphone market unaffected by global downturn – Asia Pacific key growth area

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Global economic downturn has not affected the smartphone market, which is experiencing robust growth...

Global economic downturn has not affected the smartphone market, which is experiencing robust growth. Consumers are increasingly drawn to well-designed devices with attractive features and applications such as touch screen technology, wireless fidelity (Wi-Fi) and location-based service (LBS). Software will play a major role in the mobile handset market in the next few years; in light of this, mobile operators are likely to collaborate with significant participants from the Internet community, as well as the media and the entertainment industry, in order to increase the appeal of advanced handsets.

According to Frost & Sullivan, 147.8 million smartphones were shipped in North America, Latin America, Europe and Asia Pacific by the end of 2008; by 2014, this figure is expected to grow to 442.9 million, with Asia Pacific accounting for 161.9 million devices against Western Europe’s 85.4 million.

"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 demand for converged devices which support multiple functionalities – such as touch screen, camera & video support, dual SIM provisions, Wi-Fi and integrated GPS – is expected to spur the demand for smartphones. Furthermore, social media and Internet communities, as well as application developers, are likely to gain control and prominence in the wireless and mobile market, resulting in more collaboration across the value chain. Innovation, combined with the strategy of differentiating products, will be one of the most prominent factors in achieving significant growth.

Other factors that will impact the market in the next few years include: 

  • Falling average sales prices;
  • Diversified operating system (OS) platforms;
  • Intense competition among manufacturers; and
  • The battery life of specific smartphones.

"Users are moving towards a complex and rich mobile experience made of communication, entertainment and productivity services. 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.

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