Smart Phone Market Heats Up

Analysts believe that the sales of smart phones will surpass the sales of traditional mobile phones by the end of the 3rd Quarter 2011.  Now that these devices have firmly established dominance in the marketplace, engineers and designers are hard at work to bring out the next generation of products.  The release of these products in the next few years will also allow new players to enter the market.

A report by Juniper Research shows that users can expect the following features to be loaded onto smart phones in the near future:

  • HD Video recording capability – This product feature is already available on some Samsung and Sony Ericsson models.  As the feature becomes more popular and costs fall, more manufacturers will include the technology in the handsets.
  • Dual-​core processors – This technology has been primarily associated with PCs but it’s now available on more smart phones and will be widely distributed by 2012. Users will enjoy faster processing speeds and longer battery life as a result.
  • Projector phones –  Users are generally dissatisfied with the small screen space on most phones. New handsets will eventually include technology to allow users to project screen images to a wider viewing venue.
  • 3D Technology – The 3D technology that has become so popular in theaters and is being built into newer TVs is also being developed for smart phones. Users will be able to view 3D video and still photos on their handsets.

Historically, handset manufacturers have been content to generate revenue from hardware sales. All that changed with Apple’s introduction of the iPhone, a device that allows the company to rack up recurring revenue long after the consumer purchases the smart phone. It’s not likely that Apple will enjoy market dominance without serious competition.  Juniper Research analysts expect Dell, Acer and Huawei to enter the market. In the meantime, nobody should underestimate Google. The continued investment in and focus on smart phones means marketing budgets will be directed to this sector as well.

[Sources: Entner, Roger. Smartphones to Overtake Feature Phones in U.S. by 2011. 26 Mar. 2010. Web. 5 Aug. 2010; New Generation Smartphones. Juniper Research​.com. 21 Jul 2010. Web. 5 Aug. 2010.
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.