Technology | Media | Telecommunications

Monday, December 20, 2010

U.S. Businesses Using more Smartphones for Data

In-Stat forecasts that American businesses will spend close to $27 billion on wireless data applications in 2010. To fuel data spending, In-Stat expects U.S. mobile service operators to pay $1.4 billion on subsidizing smartphones for those same businesses in 2010.

Overall, U.S. mobile phone service providers will spend close to $1.7 billion on handset subsidies for American businesses.

"Wireless data revenue has been the engine that is driving ARPU growth for U.S. operators," according to Greg Potter, Research Analyst at In-Stat.

Smartphones are the key for data plan usage. As a result, the wireless operators are willing to invest in smartphone subsidies. Those device subsidies, though, will decline through the forecast period as competitive pressures reduces smartphone average sales prices.

In-Stat latest market study found the following:

- Small business (5—99 employees) spending on smartphones will decline 28 percent over the next 5 years.

- Wireless handset spending by U.S. businesses will decline from $4.5 to $3.2 billion from 2010 to 2014 with the largest decline coming in the utility and manufacturing vertical segments in the 10,000+ size of business.

- The total small office/home office sector (SOHO) smartphone market will grow 18 percent in unit shipments in 2014 compared to 2010. The SOHO business category is comprised of U.S. businesses with one to four employees.

- The education and professional services sector will be the highest growth vertical market.

- Smartphone purchases across all verticals and all U.S. business sizes will increase 14 percent in 2014 compared to 2010.