Three Major Industry Factors Will Drive Radical Mobile Handset Changes Over the Next Five Years

In the next five years, the nature of cell phones will change radically, reports In-Stat. Increasing availability of mobile broadband, operator support for data-intensive devices, and improvements in usability for mobile devices brought about by the influence of the Apple iPhone will evolve the designs of handheld devices, the high tech market research and consultancy firm says.

"Consumers are nearing their limits adjusting to the added complexity of converged devices," says David Chamberlain, In-Stat Analyst. "Feature proliferation is impinging on usability. Handset vendors and mobile operators must carefully evaluate the drive toward increasingly converged devices with features and functions that add direct value to consumers"

Recent research by In-Stat found the following:

Wi-Fi will become increasingly available in handsets; In-Stat forecasts more than 300 million Wi-Fi-enabled cellphones will be sold in 2012.

Annual smartphone sales will double over the next five years.

By 2012, annual sales of handsets able to receive video content will exceed a half-billion.

According to a survey of over 1,500 individuals from In-Stat's technology adoption panel, almost 60 percent of respondents indicate some level of interest or already use Wi-Fi for VoIP using a cellphone.

The research, "Future Cell Phones: Diverging the Converged Device 2008-2012," covers the worldwide market for cellular devices. It includes in-depth consumer research based on the results of ongoing consumer surveys, conducted primarily in North America reflecting changes in attitudes toward a number of handset features and functions. In addition, there are recommendations for dealing with the increasing complexity in cell phones that is increasing costs without substantially increasing value to end users.

www.in-stat.com