Smartphones Growing Out of 'Niche' Status

ABI Research is announcing a new study predicting that smartphones will grow to almost 15% of the mobile phone market this year, hitting 123 million units shipped. ABI Mobile Wireless Analyst Philip Solis identifies five factors accounting for smartphones' growth:

1. Increasing demand for mobile data communications, including email and instant messaging.
2. Falling prices.
3. Greater device choices.
4. Smaller sizes (even as functionality improves), which in turn means lower power consumption and better battery life.
5. More wifi enablement in smartphones, expected to reach 25% penetration by 2010.

Today's announcement also points to shifting trends in smartphone operating systems as another important factor affecting the outlook. The report says Symbian is still market-share winner and describes the Palm OS as "moribund" (nearing death). But Windows Mobile is growing, and Motorola, Samsung, NEC and Panasonic are now backing Linux in the smartphone market.

ABI's new report is called "Smartphones: The Next Phase of Worldwide Adoption."

AB -- 2/28/06