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Integrated Web 2.0 services to keep smartphones buoyant
Published: 4 February, 2009
Tags >> Handset
Another survey indicates that smartphones will be the most resilient segment of the handset market over the difficult next two years, and this will accelerate the shift by large vendors towards integrated web services, as a new revenue stream. The smartphone will become a very different beast during the period, and some of its growth will come from gadgets that are increasingly geared to an application of primary importance to the user, such as navigation.
According to Juniper Research's report, by 2013 around 23% of all new mobile phones will be smartphones, up from 13% in 2008. This rise will be mainly driven by demand for Web 2.0 services and these will be the main differentiator over the coming years - "Changes in the design and form of mobile devices, such as the inclusion of large touch-based displays, have been taken to their limits," says the report. Now the focus will be on software, user interfaces and tight integration of key services - which could also help device makers and operators retain control of their users.
However, there are still problems with the 3G connection. Recent studies found widespread dissatisfaction with the performance of all the US' mobile broadband networks (except the nascent Clearwire), relative to the speeds promised in advertising, and the majority of heavy duty internet work on phones is still done via Wi-Fi, for speed and cost reasons. More than 80% of smartphone users would prefer accessing the web, sending emails or downloading data using Wi-Fi rather than 3G, according to a new study conducted by Devicescape (admittedly a Wi-Fi apps vendor, but its findings echo those of more independent surveys from last year). It also claims nearly 85% of those surveyed were in favour of citywide Wi-Fi networks and almost 56% would be willing to pay for the service. Shame those people weren't living in the US cities covered by the muni Wi-Fi boom and bust of mid-decade.
Key growth drivers for smartphones will include location awareness, with GPS-enabled devices the most buoyant sub-segment of the market during 2009-2011. Satnav specialist Garmin is seeking to take advantage of this, and the trend towards phones optimized for a particular service, by launching into the smartphone sector. As previously revealed, it will use Android, but it now emerges it will be working with Taiwanese netbook vendor Asustek on development and branding.
