| 17 September 2003 - In recent quarters, shipments
of smartphones and camera phones have been heating
up, according to In-Stat/MDR. The high-tech market
research firm reports that, in Q1 of this year,
1.7 million smartphones shipped around the world,
and the pace appears to be quickening. Similarly,
camera phones have been moving at a rapid pace.
For all of 2002, camera phones shipments totaled
about 18.2 million units, and Q1 2003 shipments
were 7.8 million. |
 |
However, while these two handset categories have bright
futures, a look beyond the attractive opportunities
reveals some noteworthy threats and hurdles. For smartphones
high prices, technical glitches, bulky devices, a lack
of compelling enterprise and consumer applications,
and inadequate network capacity, are all presenting
a barrier to acceptance. In addition, the perception
that the devices are mainly for mobile professionals,
still lingers. Camera phones, on the other hand, are
hindered by the need for better image sensors, more
on-board memory for picture storage, longer battery
life, and network improvements to make picture sharing
easier and interoperability a reality. Privacy concerns
are also plaguing the market.
In-Stat/MDR has also found that:
- Both of these handset sub-segments are in for solid
growth over the next five years. Smartphones will
be commonplace by 2007, and camera phones should be
ubiquitous. These handset categories are already starting
to merge, and, by 2008, it’s likely there will
be little to distinguish them. New handsets at that
time will be "smart" in a variety of ways,
and a built-in camera will be standard.
- Smartphones will grow 94.5% on a compound annual
basis through 2007.
- Shipments of handsets with an integrated digital
camera will show a compound annual growth rate of
53.2% through 2007.
This Market Alert is drawn from the In-Stat/MDR report,
"Market
for Smartphones and Camera Phones Heats Up",which
offers five-year shipment forecasts by air link technology,
five-year regional forecasts by air link, and five-year
manufacturer-revenue expectations. Other highlights
of this report on the future of smartphones and camera
phones include smartphone operating system market share
forecast, recent moves by carriers to take advantage
of the growth, challenges and threats facing these devices,
and future opportunities.
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