Smartphone sales to overtake mobile phones by 2012

LONDON, UK: 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.

This is according to communications industry market research firm Infonetics Research's biannual Mobile/WiFi Phones and Subscribers market size, market share, and forecast report.

Despite an estimated 10 percent increase in the number of worldwide mobile and WiFi phones sold the second half of 2009, a nine percent revenue decline is expected due to downward price pressure, the report adds

Richard Webb, directing analyst, mobile devices, Infonetics Research, says: “Smartphones are on track to post a 14.5 percent increase in the number of units sold worldwide in 2009, and a 21 percent 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,” adds Webb.

Around 1.1 billion mobile phones are forecast to be sold in 2009 worldwide. Nokia maintained its clear leadership of total mobile phone market share in the first half of 2009.

“On the vendor market share front, Apple's smartphone share rose to nine 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 percent,” Webb adds.