We Can Rebuild It… Better, Faster, Smarter
Jan 20, 2010 by Aaron Rubman
No, this isn’t the 6-Million Dollar Man we’re talking about, but your telephone.
The combined market share of smartphones has been growing, and not even the Great Recession could slow it down.
$6 million is a pittance to this behemoth. Palm alone grossed approximately $20 million on smart phones last year, and they aren’t even considered the industry leader.
Proof in the Usage
The NPD Group found that smartphones made up 28% of all cell phones purchased in the 2nd Quarter of 2009, up from only 12% at the end of 2007. On top of that, Gerry Purdy of Frost & Sullivan predicts that by 2015 virtually all phones sold in the United States will be smart phones.
And if we look ownership ratios rather than sales statistics, the impact is even more pronounced. In September 2009 a ChangeWave Research survey of consumers found that 39 percent of respondents already owned a smartphone, while 11% of those without intended to purchase a smartphone before the end of last year.
AT&T also corroborates the growing influence of these more robust mobile devices. During the 3rd Quarter of 2009, 42% of all AT&T subscribers owned at least one smart phone. Compared this to 27% at the end of 2008 and 13% at the end of 2007, and it’s easy to see why the telecommunications giant is so eager to open up more bandwidth to mobile devices.
Apps Made the Difference
Many analysts tie the explosion of interest in smart phones to the creation of Apple’s App Store. Access to a central clearing house of programs changed the handheld devices from being advanced communications systems into being truly portable and personal computers - customizable in accord with the preferences and requirements of each individual’s life.
With the increased access to enhanced functionality, smartphones have definitely reached the critical mass of usage. As Gerry Purdy said, “Smartphones were just a gee-whiz gadget a few years ago, but now you have a herding situation where people are asking each other, ‘What kind of smart phone do you have?’”














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