Report: Industry Factors Will Drive Radical Handheld Device Changes

By PRESS RELEASE — January 27, 2009

In the next five years, the nature of cell phones will change radically, reports In-Stat. Increasing availability of mobile broadband, operator support for data-intensive devices, and improvements in usability for mobile devices brought about by the influence of the Apple iPhone will evolve the designs of handheld devices, the high-tech market research and consultancy firm says.

"Consumers are nearing their limits adjusting to the added complexity of converged devices," says David Chamberlain, In-Stat analyst. "Feature proliferation is impinging on usability. Handset vendors and mobile operators must carefully evaluate the drive toward increasingly converged devices with features and functions that add direct value to consumers."

Recent research by In-Stat found the following:

  • Wi-Fi will become increasingly available in handsets; In-Stat forecasts more than 300 million Wi-Fi-enabled cell phones will be sold in 2012.
  • Annual smartphone sales will double over the next five years.
  • By 2012, annual sales of handsets able to receive video content will exceed a half-billion.
  • According to a survey of over 1,500 individuals from In-Stat's technology adoption panel, almost 60% of respondents indicate some level of interest or already use Wi-Fi for VoIP using a cell phone.
The research, "Future Cell Phones: Diverging the Converged Device 2008-2012" (#IN0804044WH), covers the worldwide market for cellular devices. It includes in-depth consumer research based on the results of ongoing consumer surveys, conducted primarily in North America reflecting changes in attitudes toward a number of handset features and functions. In addition, there are recommendations for dealing with the increasing complexity in cell phones that is increasing costs without substantially increasing value to end-users.

The report also includes forecasts for handset attach rates of:
  • Wi-Fi
  • GPS and navigation
  • Broadcast TV receivers
As well as smartphones such as the Apple iPhone, Research in Motion BlackBerry, Palm, Symbian, and Windows Mobile.

The price is $3,495 (US).

Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's experienced staff and in-depth research to support critical business, product and technology decisions. In-Stat's insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Regular and ongoing end-user demand and primary research surveys underpin much of the analysis, enabling In-Stat to provide incisive market knowledge and guidance on future market opportunities via syndicated research products, custom consulting, and advisory services.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.


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