CTIA - Smartphones on the rise? Thank the iPhone, panel says

The iPhone has had a profound effect on the smartphone market, panelists at the Smartphone Summit said on Monday.

When the iPhone went on sale in the U.S. last June, many observers predicted that it would ignite sales in the broader smartphone market. After nine months on sale here, and its more recent rollout in parts of Europe, it is now clear that the iPhone has done just that, analysts at the Smartphone Summit in Las Vegas said on Monday.

In the U.S., the number of people with smartphones doubled last year to about 14.6 million, said Mark Donovan, an analyst at M:Metrics. Following years of sluggish sales, smartphone sales are growing much faster than the overall rate for mobile phones, he said.

The iPhone, with its novel Web browsing experience and user interface, has helped drive excitement for the sector despite its relatively small sales. While more than 188 million Symbian phones have sold since the software's inception, Apple had sold 3.7 million phones by the end of 2007.

The buzz around the iPhone extends even to places where it isn't officially available, said Jonathan Goldberg, senior analyst at Deutsche Bank Equity Research. On a recent trip to Asia he saw the phones for sale at a 40 percent premium -- in a market where Apple hasn't begun selling the phones or done any advertising.

Ironically, some analysts said they weren't sure the iPhone should even be considered a smartphone. "The presence of a smart operating system on a phone doesn't inherently make it a smartphone," said Bill Hughes, an analyst at In-Stat. He defines a smartphone as a device for which third parties can make applications that users can download and run in native mode. Even once applications come out based on the iPhone software development kit, it's unclear if they'll do more than existing Java applications, which run on simple feature phones, he said.

The buzz around the iPhone is loudest in North America and Asia, while the reception in Europe has been more muted. "In EMEA, the volumes there are probably below what Apple would have wanted," said Pete Cunningham, senior analyst at Canalys. "It boils down to the fact that people in Europe aren't used to paying for their phones. Apple will need to look at their business model if they want to gain more traction moving forward."

In addition, users in Europe might be waiting for a 3G version of the phone before buying, said Goldberg.

Still, the iPhone is driving more interest in smartphones, as evidenced by how it dominated the discussion at the Smartphone Summit analyst panel. Despite its much larger customer base, Symbian, which is the platinum sponsor of the event, was barely mentioned by the panelists. The Smartphone Summit is a conference that typically runs the day before the CTIA mobile phone conference starts.

Few analysts, if any, would have predicted several years ago that a discussion about smartphones would center so heavily on a device from Apple.

"A few years ago we might have thought we'd see consolidation [in the smartphone market], but what we're seeing is continued, increased competition," Donovan said.

After Symbian, BlackBerry and Windows Mobile dominated the smartphone market for years, both the iPhone and Google, with its Android mobile operating system, have joined the fray. The new entrants promise to keep reshaping the future of the smartphone market.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?