Smartphone Growth Expected To Increase

According to a recent release by research firm iSuppliOverall iPhone unit sales were 8.75 million during the
Corp, global smartphone shipments are likely tomost recent quarter (second quarter of 2010),
increase 105% to 506 million units in 2014 from 246.9representing 131% unit growth over the year-ago
million expected in 2010.quarter and the highest in the company's history.
The research firm said that the smartphone unitiPhone sales represented approximately 40% of the
shipment growth of 35.5% expected in 2010 will propelcompany's total revenue.
the mobile phone market. Overall mobile handsets areThe increase was driven by intense international
expected to grow 11.3%.demand for the smartphone as well as the addition of
This growth will be fueled by new smartphones fromnew carriers in key overseas markets.
large handheld device companies, such as Google Inc.Apple's market share represents about 3% of the
(GOOG - Analyst Report), Microsoft Corp. (MSFT -overall cell phone market, and ranked no. 6 according
Analyst Report), Nokia Corporation (NOK - Analystto iSuppli in the global cell phone market in the first
Report) and Research in Motion Ltd (RIMM - Snapshotquarter. Wall Street anticipates Apple to sell a total of
Report). While the wireless market is quite competitive,about 36 million iPhones in its fiscal year ending 2010,
the rush in smartphone units indicates considerablywhich is a whopping 80% increase from over 20 million
higher growth potential for leaders such as Apple Inc.iPhones units sold in fiscal 2009.
(AAPL - Analyst Report).Apple is expected to release the iPhone OS4 --
Apple has dominated the U.S. smartphone market andcurrently in beta testing -- which should further drive
is expected to further strengthen its position throughiPhone sales. Although AT&T Inc. (T - Analyst
the launch of a fourth generation iPhone.Report) remains the exclusive U.S. carrier for the
The new iPhone will be slimmer than the previousiPhone, the company has been adding new mobile
generation, with a higher resolution display and acarriers to sell its products in other countries such as
front-facing camera for videoconferencing. The mostVodafone (VOD - Analyst Report) in the U.K and
important feature is its superior knack for multitasking,Verizon Wireless (VZ - Analyst Report) in the U.S. The
such as listening to music and simultaneously readingcompany has iPhone distribution agreements with 151
email via updated iPhone software (OS4).carriers in 88 countries.
The new iPhone is expected to be priced at $199,Longer-term, it is believed that Apple's continuous
while the current iPhone 3GS is expected to see aeffort to expand into international markets including
price cut to $99. This could unquestionably drive higherChina, its competitive pricing strategy and addition of
demand for Apple's iPhones.new carriers will drive huge growth at Apple.