Less than three years left until we see this number

Jul 26, 2007 12:39 GMT  ·  By

Mobile phone sales have registered a drop of more than 10 percent in the first quarter of this year, according to Infonetics Research. The future looks bright, though, as the smartphone market is developing and WiFi phone sales are expected to reach $145 billion by year 2010.

On a long term, handset sales are set for a rise, especially in developing countries, while revenues will continue to drop. The number of entry-level devices which are sold has increased, making the average price per unit considerably drop.

The research also sees a bright future for smartphone producers. Such devices have seen a promising development over the last period, as they have turned to regular users and not only to business people. The iPhone is an excellent example for this, along with several other such devices.

"To date, smartphone purchasers have been largely business power-users, but the launch of Apple's iPhone and Samsung's BlackJack -- media-playing smartphones that appeal to consumers -- is giving the smartphone segment a boost, and could change the dynamics of the mobile phone market. Vendors will design more consumer-oriented smartphones, and cause fierce competition among incumbent players", observed said Richard Webb, directing analyst for wireless at Infonetics Research.

Infonetics Research also sees a huge development for the worldwide WiFi phone revenue. This performance is heading towards becoming a default feature for many mobile phones. Researchers expect it to worth USD 145 billion by year 2010. Up to this point, Nokia has been the leader in dual-mode WiFi phone revenue last year, while Sony Ericsson and Motorola follow in line.

Behind this entire process stand enterprises that use LAN and IP PBX technologies and not only. Regular consumers choose WiFi phones because of the increasing adoption of broadband connections with wireless and VoIP-enabled CPE.