Smartphone Sales to Overtake Standard Mobile Phones by 2012

­Despite an estimated 10% increase in the number of worldwide mobile and Wi-Fi phones sold the second half of 2009, a 9% revenue decline is expected due to downward price pressure, reports Infonetics Research. In total, 1.1 billion mobile phones are forecast to be sold in 2009 worldwide.

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

"On the vendor market share front, Apple's smartphone share rose to 9% 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%," Webb added.

Infonetics Research also noted that smartphones account for an increasing percentage of total mobile phone revenue, driven in part by accelerating HSPA deployments in North America, Western Europe, and developed Asia Pacific countries.

Nokia maintained its clear leadership of total mobile phone market share in the first half of 2009.

Posted to the site on 4th November 2009