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Friday, 25 September 2009

Smartphones to Outstrip PCs in Global Sales by 2011

The smartphone market is growing in such a rapid pace that an analyst predicts two years from now, smartphone will outstrip PCs in global sales. By the end of 2011, the shipments of both are set to reach nearly 400 million a year, according to Royal Bank of Canada (RBC) analyst Mike Abramsky.

The figures from market research firm Gartner shows that 286.1 million units of cell phones were sold worldwide in the second quarter of 2009, down by 6.1 percent compared to the same quarter last year. Nevertheless, smartphones continue to stand out as the fastest-growing segment in the handset industry, reaching 40 million units in sales and revealing a 27 percent year-over-year increase.

As most people expected, analysts are optimistic about the future of Apple’s iPhone and Research In Motion’s Blackberry. While Gartner sees the iPhone to experience significant growth and share gains ahead in both domestic and international markets, RBC is also bullish about RIM’s popular smartphones and believes it will continue to possess sustainable advantages. However, RBC is not very positive about the world handset leader, Nokia’s current situation.

As opposed to smartphones, shipments of desktop PCs continue to slide, having already been surpassed by laptop sales in the third quarter of 2008. This continues to push PC manufacturers, like Apple, Microsoft, Dell and Acer, to join the handset arena to scramble for profits. While Asus has launched a Windows Mobile phone named Nuvifone M20 in Taiwan earlier in July, Dell will also release a smartphone in China in October. Similarly, Acer is planning to roll out three smartphones running the new Windows mobile 6.5 operating system this month.
"Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining average selling prices," Gartner’s Research Director Carolina Milanesi commented.

Considering this trend, consumers will be able to enjoy an even wider variety of choices in smartphones packed with features that are comparable to desktop PCs.

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