Investments in shares of wireless technology firms and wireless service providers have been particularly lucrative in the post-dot com era. The wireless market is in a sweet spot of the technologies space. Bountiful company opportunities exist as wireless usage continues to enhance in each developed and emerging markets. And driving this usage higher are new goods such as smartphones whose capabilities are being augmented by the deployment of third generation (3G) wireless networks.
Function-Wealthy Smartphones.
Smartphones are a lot more than mobile phones. A smartphone is a mobile telephone with constructed-in functions of a private digital assistant. Smartphones pack a diverse range of attributes and functionalities into the handset that tends to make them a mobile information and facts center and entertainment device for the user.
Smartphones commonly include things like attributes such as net browsing, e-mail, and multimedia capabilities. Certain models have adequate horse energy to run complicated software applications such as enterprise consumer connection software program and automobile navigation applications.
A complete-featured QWERTY-form keyboard, MP3 player, and Geo Positioning Systems capability are becoming frequent among larger-end smartphones. Instant messaging is a cool function producing its way into the mainstream.
Smartphones, A Developing Segment of the Handset Industry.
Smartphones represent a little, however swiftly increasing, segment of the handset market. According to Strategy Analytics, smartphone sales at 17.five million units in 2004 accounted for 3% of the worldwide sales of 684 million handsets. On the other hand, this represents a considerable jump from the 8.2 million units sold in 2003.
The demand for smartphones is projected to grow swiftly in the coming years. By 2009, the number of smartphone units sold is estimated to attain 125 million or 16% of total handset sales worldwide. This implies a 48% compound annual development rate in smartphone unit shipments over the 2004-2009 period.
Smartphone Early Adoption Led by Asia and Europe.
Adoption of smartphones has been specifically rapid in Asia and Europe. The aggressive deployment of advanced wireless networks in these regions has encouraged early adoption of smartphones.
The Asia Pacific region presently accounts for about 37% of global smartphone sales with South Korea and Japan being leaders in smartphone usage. The European industry accounts for 27% of international smartphone sales. Analysts expect smartphone sales in Europe to exceed sales in the Asian marketplace in the coming years. North America’s industry share in smartphone sales was expected to attain 25% by the end of 2004.
Nokia, the 800 lb. Gorilla of Smartphones.
iPhone 13 PRO (NYSE: NOK) is by far the dominant worldwide smartphone manufacturer. The Finnish firm is at present estimated to command half to two-thirds share of the global smartphone market.
Nokia not too long ago introduced its function-rich Nokia 7710 smartphone in Europe and Africa. The wide-screen Nokia 7710 smartphone includes a complete World-wide-web browser, an integrated music player, a camera with 2x digital zoom, and a FM radio. One particular of the nifty characteristics of the Nokia 7710 smartphone is its ability to make weblogging mobile. Users can post photographs and text from the Nokia 7710 smartphone straight to the net through the ‘moblog’ client.
Nokia is also anticipated to introduce the Nokia 3230 smartphone in the initial quarter of 2005. The Nokia 3230 smartphone functions a video recorder and ‘Movie Director’ that will permit 1 hour of video to be captured.
Nokia is now increasingly searching at software program licensing deals to support differentiate itself from its competitors. Nokia has not too long ago signed licensing offers with Macromedia and RealNetworks. Nokia is also said to be working on handsets that will get wireless television feeds.
Smartphone Investment Implications.
The escalating adoption of smartphones augurs effectively not only for Nokia but also for other smartphone companies like palmOne (Nasdaq: PLMO) and Analysis In Motion (Nasdaq: RIMM). palmOne not too long ago introduced the GSM edition of its Treo 650 smartphone. Analysis in Motion lately released the newest model in its BlackBerry 7100 series, the 7100g.
The incorporation of extra attributes and functionalities that make smartphones the transportable information and facts center and entertainment device of selection has bullish implications beyond just suppliers of smartphones.
Wireless service providers like Vodafone (NYSE: VOD) should see their typical revenue per user becoming buffeted with increasing use of worth-added solutions that smartphones allow.