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Saturation of U.S. Mobile Data Applications

Growth in revenue for mobile phone business applications was close to 50 percent between 2006 and 2007, but then will slow to 44 percent from 2007 to 2008, according to the latest market assessment by In-Stat.

These strong growth projections are good news for the wireless industry, but may be lower than some may be planning on based upon the literal reading of end-user survey data, the high-tech market research firm says.

That's because there is a widening gap between what decision-makers expect that they will do and what they actually implement.

"As business users approach saturation for horizontal mobile data applications, most of the growth potential remains for vertical market applications," says Bill Hughes, In-Stat analyst. "These require more planning and time to implement. The result is that many within the wireless industry may have overoptimistic forecasts."

The research covers the U.S. market for mobile business data. It provides forecasts for mobile data applications through 2011. It also contains results from a 2007 survey of U.S. businesses regarding mobile data applications and analysis of the climate for mobile data among U.S. businesses.

In-Stat's market study found the following:

- The penetration of at least one mobile data application among firms increased from 75 to 94 percent in 2007.

- Smartphone use among U.S. business users increased 34 percent between 2006 and 2007.

- Four horizontal applications, wireless email, wireless Internet access, wireless instant messaging, and personal information management (PIM), have the highest penetration because they are easier to implement than the vertical market applications.

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