13 November 2007

Smartphone Market Overtaking Laptop Market

The size and growth of the smartphone market will exceed the laptop market for the next five years, according to a report.

Smartphone OS-based phones will grow at more than a 30% compound annual growth rate for the next five years globally, taking an increasing share of the overall phone market that is otherwise growing in single digits, according to a report by market research company In-Stat. The unit volume of smartphones globally also exceeds the unit sales for laptops.

Users are experiencing significant value from their smartphones, according to the In-Stat report. As a result users are downloading more applications and generating higher usage as measured by average revenue per user (ARPU) for wireless carriers. 

"Because of the value users are finding, organizations are slowly taking ownership of smartphones and data applications used for business purposes," explained Bill Hughes, an analyst with In-Stat. "Rather than having overcomplicated reimbursement plans, more organizations are finding it more expedient and economical to treat wireless voice and data services as a business expense when they use smartphones."

All Smartphone OSs (other than the Palm OS) will grow at double digits over the next five years, concluded the report. Smartphone use will grow mostly from use as a laptop replacement,and as a tool to help manufacturers develop feature phones.