Number of smartphone users to quadruple, exceeding 1 billion worldwide by 2014

The demand for smartphones is creating a demographic shift among users, who will exceed 1 billion worldwide by 2014, stimulating demand for more entry-level models that offer mainstream solutions such as mobile email and social networking applications, according to Parks Associates’ Smartphone: King of Convergence.

This new report includes consumer data from Parks Associates’ primary study Mobile Convergence: Platforms, Applications, and Services. This consumer survey finds only 30% of current smartphone users are the stereotypical young and tech-savvy aficionados.

The other user segments exhibit more mainstream demographic attributes and more divergent usage patterns. One such segment, dubbed “pragmatists,” consists of budget-conscious, middle-aged users who prefer mobile email service over Internet access. Another group is keen on the smartphone’s communication features, ranging from mobile Internet to social network access.

Smartphone: King of Convergence tracks smartphone sales and market shares and analyzes carrier strategies, new mobile applications and services, and mobile technology trends. Mobile Convergence: Platforms, Applications, and Services is a survey of U.S. mobile consumers about ownership and attitudes regarding mobile devices and services.

For more information, visit http://www.parksassociates.com/mobile.

Mobile Internet and E-mail Services Jump in Popularity among U.S. Consumers

Adoption of non-text mobile data services has exceeded 40% of the more than 70 million U.S. broadband households with a mobile phone service, according to Parks Associates’ new consumer study Mobile Convergence: Platforms, Applications, and Services.

Over one-fourth of mobile service users have adopted mobile Internet and e-mail services, eclipsing other mobile data ARPU drivers like mobile TV and music, indicating that carriers will have to win subscribers through more “practical” services first. The fast adoption of mobile social networking and navigation services, which have both exceeded 10%, also indicates carriers can be successful in deploying popular Web activities as revenue-generating data services on the mobile platform.

Non-text mobile data services are central to wireless carriers’ long-term plans for revenue growth. The strong growth in usage of mobile Internet, e-mail, social networking, and navigation during the past two years shows consumers are eager for mobile applications that offer convenience and rich features. Use of multipurpose devices like smartphones is another driver. Smartphone penetration will exceed 30% of broadband households in 2009. These 20 million households will be a perfect target for carriers to market their mobile data services.

Personalization and unique value of smartphones to push global sales to 310 million units in 2013

Consumer demand leads to almost 20% annual growth between 2008 and 2013--

The consumer appetite for smartphones is skyrocketing and will push annual sales worldwide from 131 million units in 2008 to over 300 million by 2013, according to international market research company Parks Associates.

The firm’s new report Mobile Services: Global Outlook finds consumers are attracted to these converged devices because they combine practical and entertainment applications into a mobile platform, which can then be expanded incrementally with new and unique add-ons and applications like Breadcrumbz from the Google Android Market.

Consumers have a personal connection to their phones. Apps like T-Mobile’s Sherpa will learn from its user’s preferences in order to make personalized, location-based recommendations on restaurants and shops. The latest iPhone release is making a strong case for mobile video, and with a little help from the Apple App Store, users can turn their phone into a lightsaber.

Smartphone users worldwide will top 1.1 billion in 2013, creating a lucrative market for mobile carriers and mobile application developers.

The success of the iPhone, Pre, and Blackberry shows the strength of consumer demand for an intelligent, multifunctional device. The appeal of the smartphone will create significant new revenue streams for carriers and developers, who should strive to create new service bundles that build off this mobile platform with converged video, voice, and data applications.

Parks Associates is launching a new consumer study Mobile Convergence: Platforms, Applications, and Services to explore smartphone users’ service and application usage patterns, handset feature and function requirements, and expectations for new mobile content and service experience.

This study will uncover hidden consumer needs and help carriers, handset manufacturers, and application developers identify and quantify business opportunities in this fast-growing market segment.

Mobile Services: Global Outlook is Parks Associates’ latest industry report on global mobile market intelligence. It provides market trends in global carrier subscriber growth and handset sales and analyzes carriers’ voice and data service strategies.


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