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Falling Prices and Development of New Social Networking Apps Drive Sales of Smartphones, According to New Report by Global Industry Analysts, Inc.(March 21, 2012)
San Jose, California (PRWEB) March 21, 2012
Follow us on LinkedIn Smartphones symbolize the extent of technology evolution and innovation achieved during the 21st century. Smartphones are currently a craze in the digital industry, a trend which can be put into perspective by the fact that these phones will account for over 20% of consumer spending on digital products, over the next few years. With smartphone shipments outstripping PCs, the trend marks a paradigm shift in the world of computing. Smartphones are growing as viable alternatives to laptops and PDAs, offering basic phone features, coupled with multimedia functionality, mobile internet applications, advanced messaging, email, browsing, data services (such as applications, media, location services), instant messaging, navigation, built-in GPS capabilities and high speed data processing capabilities. Demand catalysts for smartphones include mobilization of business, improved carrier focus on offering data services, faster 3G networks, third party mobile applications, and advanced handset technologies that offer compelling user experiences, in terms of display, battery, interface, form factor, and processor. Also, the price-performance ratio over the years has modulated to accommodate the rising communication, information, and entertainment needs of wireless users.
Continued adoption of smartphones, especially in the enterprise mobility space, will drive growth in the upcoming years. With business organizations expanding beyond regional boundaries, workforce mobility has increased substantially in recent times. Also, with organizations encouraging the work-from-home option in order to cut costs, the number of teleworkers or employees working from a remote location has increased. The scenario has created a new wave of enterprise mobility with organizations allowing mobile employees to access companys resources through remote access points using personal communication devices such as smartphones. The growing number of mobile worker population bodes well for the continued adoption of smartphones in the enterprise sector. With enterprise PCs being increasingly replaced by smartphones, the pressure is on to develop new smart software/applications for smartphones. Successful development of smartphone business apps in turn will further fuel the adoption of smartphones for business uses. Cisco, Avaya and Siemens have already made rapid strides in building smartphone compatible UC soft client, which can either be downloaded by the user or which can be licensed by corporate IT departments for installation on employee handsets.
Globally, smartphones are rapidly evolving and the focus has shifted from form to software and operating systems. Open source OS platforms such as Android will drive the growth of smartphones in future. Android is currently the most often used and most preferred smartphone OS. The Android OS platform is expected to continue snowballing in the world market and Android based smartphones, which current come in a wide variety of forms and flavors, are poised to gain the maximum gains in a handset market where the war waged is a war of mobile ecosystems rather than mobile handsets. A key factor fingered for Androids stellar performance is the inherent robustness of the Android platform, in comparison with iPhone, which lends Android smartphones more open to data use. Survey findings indicate that Android users on a monthly scale consume over 575 megabytes of data, followed by IPhone users trailing a distant second with 485 megabytes. Following suite are WebOS phones, Windows Phone and BlackBerry with data usage ranging from 420 to 130 megabytes. Key factors cited for Androids data hungry characteristics include Androids ability to download apps bigger than 20 MB wirelessly over cellular networks unlike Apple, which requires users to download bigger apps through wired connections. This thereby makes the Android more power and data intensive than iPhone.
While the global consumer electronics industry continues to recover, as is indicated by the robustly recovering smartphone sales, the industry in Europe remains nervous about the play out of the sovereign debt crisis drama. Macro themes affecting Europe include the prolonging of the sovereign debt crisis as a result of the half-measures implemented till date in attempts to stave off the crisis, a dysfunctional financial system that is fuelling a slow-motion economic collapse and fears over reduced consumer spending and slower economic growth as a result of austerity measures. At the extreme pessimistic end of the spectrum, bearish outlook indicates a possible collapse of the Euro as a common currency, which could pose insurmountable problems for the electronics industry. The already softening domestic imports of consumer electronics, under such as scenario, could take a turn for the worse. A more balanced outlook is the possible exit of the debt ridden economies, Portugal, Italy, Ireland, Greece and Spain, from the European Union. A return to local currencies, which would be massively devalued, will likely bring in critical implications for the industry. Against a backdrop of all of these factors, consumer spending which continues to remain a key pillar of growth in the market, which although currently jittery and sensitive to vacillating market sentiments, is nevertheless expected to hold up in the year 2012.
Interestingly, in Europe, the debt crisis is triggering a rise in demand for Android based smartphones, which are cheaper in comparison to iPhone. In Greece & Portugal, iPhone constituted only 4% and 10% respectively of the total smartphone sales in the year 2011, while Android based smartphones accounted for the remainder. iPhones poor sales performance juxtaposed with the robust gains in Googles Android operating system, reflects a slowdown-induced shift in consumer purchasing patterns towards low cost models. The trend marks an actual expansion in the market at the low-end thus counterbalancing the decline being witnessed in the high-end premium tier.
As stated by the new market research report on Smartphones, Asia-Pacific represents the largest market worldwide. The region is also forecast to emerge into the fastest growing market with a projected CAGR of 38.8%, over the analysis period. The Android Operating System is projected to witness robust growth trailing a CAGR of 114% over the analysis period.
Major players in the global marketplace include Apple Inc., Fujitsu Limited, Hewlett-Packard Development Company, High Tech Computer Corporation (HTC), Motorola Mobility Inc., Nokia Corporation, Panasonic Corporation, Research In Motion Limited, Samsung Electronics Co., Ltd., Sharp Corporation, Sony Ericsson Mobile Communications AB, Google Inc., Microsoft Corporation, among others.
The research report titled Smartphones: A Global Strategic Business Report announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (in units) for major geographic markets including the United States, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. The market is additionally analyzed by operating systems, such as, Symbian, Android, iOS, Blackberry, Windows, and Others.
For more details about this comprehensive market research report, please visit
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/
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