Smartphone sales to dominate by 2012

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Smartphones are likely to stay hogging the spotlight for some time to come if the latest industry predictions come true.

By 2012, smartphone sales will outpace sales of other mobiles, according to Infonetics Research's biannual Mobile/Wi-Fi Phones and Subscribers market size, market share, and forecast report.

In 2009 alone, more than one billion mobile phones are expected to be sold around the world.

Prices will affect market growth as better deals for users squeeze margins. Indeed, while the number of mobile and Wi-Fi-enabled phones is predicted to grow by 10 per cent, revenue will decline by nine per cent, according to the research.

"Smartphones are on track to post a 14.5 per cent increase in the number of units sold worldwide in 2009, and a 21 per cent compound annual growth rate from 2008 to 2013, significantly better than other mobile phone segments," said Richard Webb, Infonetics Research's directing analyst for mobile devices, in a statement.

"While smartphone revenue is expected to dip in 2009 mainly due to price erosion and lower-ARPU units coming to market, we expect it to pick up in 2010 and continue growing, easily outstripping the combined revenue of standard mobile phones by 2012."

He added: "On the vendor market share front, Apple's smartphone share rose to nine per cent in the second quarter of 2009 on the strength of the iPhone 3GS. Competition for the iPhone is increasing though, with AT&T's splashy launch of the Blackberry Bold 3G in partnership with RIM a prime example. And while iPhone applications are proliferating, the iPhone OS is sure to face stiff competition from the open-source Android platform. Apple will have to fight hard to drive its market share back above 10 per cent."

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