Smartphones: Improving Share But of a Smaller Market

instat.gifTwo recent reports say that the smartphone market will continue to grow…

What are the reasons for this? NPD says that smartphones gained market share against all handsets in 2008, as prices became more competitive. In-Stat says new and prospective smartphone buyers are drawn to new mobile applications.

I am slightly cynical. The market for all phones (smartphone + non-smartphone) will obviously decrease in 2009. Hence, a doubling in smartphone market share won’t the same as shiping double the number of phones sold last year. I suspect most people who could afford a high end phone last year still can. Mid to low end users are just looking for cheaper contract or sim-only deals. Hence, I suspect smartphones will achieve greater market share partly because the customers are still there.