Smartphones to account for 64 pc of the profits for handset industry: Informa Telecoms & Media

17 Dec

Smartphones are the fastest growing and the most profitable segment of the mobile handset industry, according to a forecast by Informa Telecoms & Media. The market research outfit predicts that smartphones are likely to grow by 36 percent in 2010.

 

Though the smartphones would account for 27 percent of the total number of handsets sold in 2010 but the profits generated by smartphones would be as high as 64 percent of the total profits produced by the mobile handset industry.

 

The Average Selling Price (ASP) of a smartphone is usually high as compared to other devices. High ASP’s has led to the growing profitability of the smartphone industry which in turn has attracted many incumbents such as Nokia, Samsung, LG, Motorola and Sony Ericsson to join the league. Existing players such as RIM, Apple and HTC are still leading the smartphone industry though many new players have arrived. Informa Telecoms & Media expects the market share of these four challengers to shoot to 35 percent of all smartphones sold in 2009 from 24 percent in 2007.

 

Nokia and Microsoft are overhauling their operating systems with an aim of capturing a challenging position in the global smartphone industry. Recently Samsung launched its Bada OS in an effort to make every ordinary device a smartphone. Google’s Android, which is getting popular day-by-day, seems to be a lifesaver for other incumbents. In the coming period, Motorola, Sony Ericsson and Samsung are soon to launch smartphones based on Android with a clear aim of innovating their smartphone portfolio.

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