Skip to main content

Smartphone Growth Tops the Mobile Sector

When will the wireless sector reach total market saturation? Apparently not anytime soon. The worldwide mobile phone market continued solid double-digit growth in the second quarter (2Q08) as competition in high-end devices heated up.

According to IDC's market assessment, vendors shipped a total of 306.0 million units, an increase of 5.6 percent from the 289.7 million units shipped during the previous quarter and up 15.3 percent from the 265.4 million units shipped during 2Q07.

Total shipments for the quarter were in line with IDC's expectations, even as vendors cited economic challenges and changing demands within key regions.

"Since the start of the year, vendors have been wary of the potential decrease in demand for mobile phones," says Ramon T. Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends Team.

"That has not stopped vendors from experimenting with and releasing a host of mid-range and high-end devices with GPS, touchscreen, and multimedia. This also goes for hotly contested emerging markets, where vendors are introducing phones that offer features in addition to voice telephony. Reception towards these devices has been warm, and as we head into the holiday quarter, demand for these and other devices will no doubt increase."

These design changes are escalating competition between devices in a new way. Converged mobile devices, also know to the industry as smartphones, have typically been the category of handsets incorporating higher-end features such as GPS and touchscreen. However, these features are quickly moving onto handsets further down the food chain -- feature phones.

"Smartphones are still seeing growth rates hovering around 40.0 percent year-over-year, while the rest of the industry is growing at roughly 10.0 percent," said Ryan Reith, senior research analyst with IDC's Mobile Phone Tracker.

"However, grouping the rest of the handsets into one category is doing the industry no justice. The rise of the feature phone has created a battle at the high-end of the market, with the main difference between smartphone and feature phone being the high-level operating system. We expect the competition at the high-end will help drive growth within the market and help move volume to higher-end devices."

In North America, mobile phone shipments experienced a healthy lift from last quarter, with vendors introducing a number of feature phones ahead of the much anticipated iPhone 3G. In many cases, these offered touchscreen, music, or GPS.

At the same time, the converged mobile device market grew faster than the overall mobile phone market and accounted for nearly a fifth of total mobile phone shipments.

Popular posts from this blog

Think Global, Pay Local: The eCommerce Paradox

The world of eCommerce payments has evolved. As we look toward the latter half of this decade, we're witnessing a transformation in how digital commerce operates, with a clear shift toward localized payment solutions within a global marketplace. The numbers tell a compelling story. According to Juniper Research's latest analysis, global eCommerce transactions are set to reach $11.4 trillion by 2029, marking a 63 percent increase from $7 trillion in 2024. This growth isn't just about volume – it's about fundamental changes in how people pay for goods and services online. Perhaps most striking is the projected dominance of Alternative Payment Methods (APMs), which are expected to account for 69 percent of global transactions by 2029, with 360 billion transactions processed through these channels. eCommerce Payments Market Development What makes this shift particularly interesting is how it reflects the democratization of digital commerce. Traditional card-based systems ar...