Vision - May/June 2008 - (Page 15)

S PDA, Felbert & Eickenberg/Getty Images; Brain Waves, Chad Baker/Getty Images urﬁng the Internet on a computer can be a fun and rewarding experience. Not so much on a cell phone, with its diminutive screen and cramped keyboard. Even Apple’s iPhone, which has won lavish praise for its excellent display and exemplary user interface, is not completely Web-compatible. It won’t play all of the videos and animations found at certain sites, for example. Change is at hand, however, thanks to new generations of the chips that run the most powerful cell phones—known as smartphones—expected to debut in the months and years ahead. A smartphone is a cell phone that combines computer-like functionality—such as Internet access and e-mail capabilities—with the features of a PDA. In addition, a smartphone may have a touch-sensitive display or an integrated keyboard. Currently, according to CEA market research, smartphones are in the hands of 11 percent of cell phone owners, who are primarily high-income men and, on average, 35 years old. Moreover, ownership of the devices skyrocketed in 2007 and is expected to mushroom again this year. CEA estimates that 20.7 million smartphones were sold to dealers last year, up from 14 million in 2006 and only 2.3 million in 2003. This year, CEA projects these smartphone sales will spike to 27.3 million units. The NPD Group, a research ﬁrm based in Port Washington, N.Y., says smartphones accounted for 12 percent of all cell phone sales to consumers in the fourth quarter of last year, up from just six percent of such cell phone sales in the fourth quarter of 2006. According to CEA, 22 percent of adult cell phone owners who plan to purchase a new cell phone within the next six months are interested in Internet access and e-mail services, and 32 percent are interested in cell phone-based navigation (GPS) service. Sixteen percent of this group already owns a smartphone, CEA says.

Table of Contents Feed for the Digital Edition of Vision - May/June 2008

Vision - May/June 2008 Contents Shapiro's Spectrum In This Issue The Economist C4 Trends Visionary Making the Smartphone Truly Intelligent Shipping Strategies for CE Companies IP in BRIC Countries CEA Newsline Tech Speak Eye on Business Tech Policy Market Insider Just the Stats

Vision - May/June 2008

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