Smart phones and camera phones will dominate by 2008

Shipments of smart phones and camera phones are set to grow massively over the next four years, according to In-Stat/MDR

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By  Mark Sutton Published  September 16, 2003

The upper end of the mobile phone market looks set for strong growth over the next few years, according to research fro In-Stat/MDR. Both smart phone and camera phone shipments will enjoy CAGR of over 50% until 2007, as both segments take off.

For the first quarter of 2003 worldwide shipments of smart phones reached 1.7 million, while 7.8 million camera phones were shipped in the same period.

In-Stat/MDR's research predicts that the smart phone market will grow by 94.5% CAGR for the next four years to 2007, while shipments of phones with an integrated digital camera will grow by 53.2%. By 2008, cameras will be ubiquitous in mobile handsets, with most handsets also including a number of 'smart' features as well.

There are some technical issues that will have to be overcome to achieve these figures however, according to Neil Strother, senior analyst with In-Stat/MDR: "While these two handset categories have bright futures, a look beyond the attractive opportunities reveals some noteworthy threats and hurdles," he said.

Among the problems facing smart phones is that they are still expensive devices regarded as business tools for mobile professionals, that also suffer from technical glitches, a lack of applications and are often appreciably more bulky than a standard handset. Camera phones require better image sensors, longer battery life and more memory capacity to store photos, as well as better network connectivity to make picture sharing easier, Strother said.

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