Investments in shares of wireless technologies 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 small business possibilities exist as wireless usage continues to improve in each developed and emerging markets. And driving this usage greater are new products such as smartphones whose capabilities are being augmented by the deployment of third generation (3G) wireless networks.
Function-Wealthy Smartphones.
Smartphones are far more than mobile phones. A smartphone is a mobile phone with constructed-in functions of a individual digital assistant. Smartphones pack a diverse range of options and functionalities into the handset that tends to make them a mobile info center and entertainment device for the user.
Smartphones usually involve functions such as net browsing, e-mail, and multimedia capabilities. Specific models have enough horse energy to run complex software applications such as enterprise buyer partnership computer software and automobile navigation programs.
A full-featured QWERTY-type keyboard, MP3 player, and Geo Positioning Systems capability are becoming frequent among greater-finish smartphones. Immediate messaging is a cool feature making its way into the mainstream.
Smartphones, A Expanding Segment of the Handset Marketplace.
Smartphones represent a small, yet swiftly developing, segment of the handset market place. According to Tactic Analytics, smartphone sales at 17.5 million units in 2004 accounted for three% of the worldwide sales of 684 million handsets. Nonetheless, this represents a significant jump from the eight.2 million units sold in 2003.
The demand for smartphones is projected to grow rapidly 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 price in smartphone unit shipments more than the 2004-2009 period.
Smartphone Early Adoption Led by Asia and Europe.
Adoption of smartphones has been specifically fast in Asia and Europe. The aggressive deployment of advanced wireless networks in these regions has encouraged early adoption of smartphones.
The Asia Pacific region at present accounts for about 37% of international smartphone sales with South Korea and Japan being leaders in smartphone usage. The European market place accounts for 27% of international smartphone sales. Analysts anticipate smartphone sales in Europe to exceed sales in the Asian market place in the coming years. North America’s marketplace share in smartphone sales was anticipated to reach 25% by the finish of 2004.
Nokia, the 800 lb. Gorilla of Smartphones.
Nokia (NYSE: NOK) is by far the dominant international smartphone manufacturer. The Finnish organization is currently estimated to command half to two-thirds share of the worldwide smartphone market.
Nokia lately introduced its feature-wealthy Nokia 7710 smartphone in Europe and Africa. The wide-screen Nokia 7710 smartphone contains a full Internet browser, an integrated music player, a camera with 2x digital zoom, and a FM radio. 1 of the nifty attributes of the Nokia 7710 smartphone is its ability to make weblogging mobile. Customers can post pictures 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 first quarter of 2005. huawei phone and ‘Movie Director’ that will permit 1 hour of video to be captured.
Nokia is now increasingly searching at software program licensing bargains to assistance differentiate itself from its competitors. Nokia has not too long ago signed licensing bargains with Macromedia and RealNetworks. Nokia is also mentioned to be operating on handsets that will obtain wireless tv feeds.
Smartphone Investment Implications.
The escalating adoption of smartphones augurs effectively not only for Nokia but also for other smartphone makers like palmOne (Nasdaq: PLMO) and Investigation In Motion (Nasdaq: RIMM). palmOne recently introduced the GSM edition of its Treo 650 smartphone. Investigation in Motion not too long ago released the newest model in its BlackBerry 7100 series, the 7100g.
The incorporation of further options and functionalities that make smartphones the transportable information center and entertainment device of selection has bullish implications beyond just makers of smartphones.
Wireless service providers like Vodafone (NYSE: VOD) ought to see their typical revenue per user being buffeted with growing use of value-added services that smartphones enable.