The Surge of Wi-Fi Handset Market

The Wi-Fi handset market is entering a revival period as both its shipments and Wi-Fi hotspot usage are set to increase significantly, reports In-Stat.

According to the research firm, the number of W-Fi-embedded phones sold has been booming for the past few years. From 2007 to 2008, the shipments have registered a growth of more than 50 percent, which was driven by enhanced phone functionality, lower price tags, as well as carrier promotions. For the current year, In-Stat expects the industry to ship 128.4 million Wi-Fi capable phones in total, up from 103 million units sold last year.

Meanwhile, In-Stat predicts that the Wi-Fi handset share of all cell phones will more than double from 11.5 percent this year to 25 percent by the end of 2012. There were 121 cell phones equipped with Wi-Fi capability released during the first half of 2009, which were as many as all introduced in 2008.

The increase in the number of mobile devices with Wi-Fi is driving hotspot usage. For instance, AT&T recently announced that smartphones and other integrated devices have made up 60 percent of its Wi-Fi connection in the third quarter, compared with 49 percent in Q2. In-Stat estimates that total hotspot usage will increase by 47 percent this year, bringing total worldwide connections to 1.2 billion.

Apple’s iPhone is believed to be the main driving force behind the high consumer adoption, as the company enjoyed a considerable growth in Wi-Fi market share compared to last year. Its share climbed from merely 3 percent in the second quarter of 2008 to nearly 20 percent during this year’s quarter. BlackBerry’s maker Research in Motion also won a greater share, rising from around 11 percent to 15 percent.

On the contrary, Nokia, the world leader of dual-mode Wi-Fi phones, has seen a drop in its market share over the same period. The handset giant’s share dropped considerably from over 55 percent a year ago to 35 percent.

Following this trend, the Wi-Fi technology is going to become more prevalent in the mobile industry that it may eventually revolutionize the way we use our phones in the future.

Tags: iPhone Accessories, BlackBerry Accessories, Nokia Accessories, Apple iPhone 3G S Accessories, Apple iPhone 3G Accessories, 2-in-1 Wi-Fi and Bluetooth Dongle USB Adapter