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Saturday, October 11, 2008
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As major EMS/ODM companies continue to face strategic and operational challenges, will we see another giant merger in 2008?
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MARKET TRENDS > JUNE 2008
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Global Sales of Smartphones to Surge 70 Percent in 2009

30 June 2008

In response to the launch of Google`s Anroid, a platform for smartphones, Nokia, the world`s largest mobile phone supplier, suddenly decided to offer its Symbian smartphone operating systems, and without royalty. The market-savvy move is expected to fuel global sales of such handsets by 70 percent in 2009, according to Dataquest, a market survey institute.

In addition to Google`s Anroid, Nokia`s strategy will probably stun Microsoft Corp, who has also provided embedded operating systems for mobile phones, and its downstream clients, like Taiwan`s High Tech Computer Corp, a world-class vendor of HTC Touch handsets. Industry insiders believe that the decision to offer Symbian royalty-free shows Nokia`s intense ambition to keep its lead in the sector, and, from another viewpoint, will also further expand the market for smartphones.

Currently, handsets suppliers must pay $30 in royalty to use Microsoft`s embedded operating systems for each smartphone, hence compromising profits. But, if Microsoft moves to counter Nokia`s Symbian, overall sales of Microsoft`s platform-based smartphones will very likely surge in the future, Dataquest noted.

Dataquest statistics show that last year global shipment of smartphones totaled 120 million units, with 60 percent adopting Symbian`s operating systems, and only 12 percent using Microsoft`s. In the meantime, RIM and Linux commanded shares of about 10 percent each.

Global sales of smartphones are estimated to soar 50 percent to 180 million units this year, and, after Symbian`s operating systems become available royalty-free, will further grow 70 percent to break 300 million units in 2009, Dataquest added. Such lucrative market has attracted more international leading brands, including Apple, Samsung, Sony Ericsson and LG, to venture into this segment this year than ever before.

Source: CENS

 
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