Smartphone Will Be Next Phone For Many

[SteveW]

Smartphone Will Be Next Phone For Many

The rise in smartphones could lead to tighter relationships between carriers and device manufacturers, according to a Yankee Group report.

By Marin Perez
InformationWeek
June 12, 2009 03:37 PM

Consumers are increasingly upgrading their cell phones to more sophisticated devices, and a new report from Yankee Group said 41% of U.S. consumers are likely to choose a smartphone for their next phone purchase.

The report, titled "Latest Palm Device 'Pre'-views Future OEM-Operator Relationships," said the average consumer has owned four mobile phones, and their appetite for enhanced features makes devices like the iPhone, BlackBerry, and Android-based handsets increasingly appealing.

Like many segments of the economy, the mobile phone industry is expected to have a down year because of the global economic recession. But smartphones are still expected to increase in sales, and Yankee Group expects these devices to account for 38% of all handsets shipped by 2013.

The proliferation of smartphones also will have a big impact on the relationship between the carriers and the device manufacturers, the report said. U.S. carriers have long had tight control over what devices got on their network, but handsets like Apple's iPhone have shifted the dynamic somewhat. The iPhone bears very littleAT&T (NYSE: T) branding, and customers deal with AT&T only when they're paying the bill.

The report said the growth in smartphones will lead to increased collaboration between mobile operators and handset manufacturers. The report singled out the recent launch of the Palm Pre as a good example of this new type of relationship.

"Sprint (NYSE: S) and Palm are two companies desperate for a blockbuster hit," said Chris Collins, Yankee Group senior analyst, in a statement. "And as such, they are either the perfect or worst possible partners for one another. The fate of both companies relies on the success of their alliance around the Pre."

The mobile operators are seeing revenue decline from traditional voice services and smartphones open up lucrative new revenue streams with mobile data packages. For the manufacturer, a strong relationship with the carrier will likely include strong marketing, and this could lead to more customers buying the smartphone.


SW

[Nextel32708]

I have a smartphone (Palm Treo 650) and I don't think I'd ever switch back. Well... maybe back to my Katalyst just to use the UMA feature - but I'd not permanently switch back to a dumbphone.

I might get another smartphone though!

[JasonLAllerdings]

I'm waiting till the providers include the web surfing into the base plans and not tack them on top of the plans as extra.

[Jay2TheRescue]

IMHO you've got a very long wait. Data plans are very profitable. They won't "give" it to you, unless the price of the voice plan goes up considerably. Just like the auto companies. They don't "give" you air conditioning standard, unless they jack up the price of the base model by a few thousand dollars.

[cheddar]

It is a matter of time before one of the smaller companies gets desperate and starts offering whatever it takes to survive.

[Jay2TheRescue]

Gee, I thought Sprint was already going down that path...

[mmmmna]

Originally Posted by JasonLAllerdings

I'm waiting till the providers include the web surfing into the base plans and not tack them on top of the plans as extra.

I want an open architecture smartphone to be accepted on Verizon Wireless. AND the data plan that Jason wants. And some cake, too.

[Jay2TheRescue]

Would you like a glass of ice cold milk to go with that cake?

[viewfly]

It will be hard for me to go back...unless some day I just can't afford it!

[SteveW]

The report said the growth in smartphones will lead to increased collaboration between mobile operators and handset manufacturers. The report singled out the recent launch of the Palm Pre as a good example of this new type of relationship.

The release of the HTC Dream/T-Mobile G1 on T-Mobile was another good example. Mine has a hardly-visible T-Mobile logo above the screen, but nothing in the user-interface to indicate that it's a T-Mobile device. No My Faves, T-Zones, web2Go/Yahoo, T-Mo games, ringtone downloads or any of that junk.

I am resigned to paying a carrier for an unlimited data plan. I hope that, with competition, it becomes cheaper. But I don't accept the awful user interfaces and extra money-making schemes that most carrier-produced phone software forces on the consumer. The iPhone, Android and now the Pre, are moving us toward a better phone user-experience.


SW

[bboris52]

Good find, thanks.

[NYCDru]

Palm Centro to Blackberry Curve for me and I am NEVER going back to another non smart phone.

[Jay2TheRescue]

I still occasionally put my SIM card in my red V3 just for fun...

[Smith31]

I'm waiting for that.

[SteveW]

Originally Posted by Jay2TheRescue

I still occasionally put my SIM card in my red V3 just for fun...

I sometimes use my old LG flip as well - when I don't want to (or can't) carry a handheld computer and just want a tiny phone to put in my pants pocket. Summertime at the beach or when going to a crowded, noisy club (rarely, at my age), for example. Also, I don't wear a watch, so in those situations, besides an being emergency phone, my flip is also my clock.


SW

[cellwiz09]

If you wanna keep up w/ communications, the smart phone is the only way to go. Just can't do the same thing on a regular phone...with efficiency anyway.

[josephd]

This is my second smartphone and I will probably not be without one from now on. The Curve is also plenty small enough to fit comfortably in my pocket.

[Charlyee]

I know I will never be without one; before the advent of SmartPhones, I used PDAs. I am glad I don't have to carry 2 devices anymore.

I carry my Treo everywhere including fishing. Good thing too, the fishing pictures were in hubby's in box before we got home. I don't have a spare GSM phone & even if did I wouldn't switch back & forth between the two.

Palm850/v0100 Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.11)

[Scrumhalf]

I love my iPhone. Looking back at a dumb phone is almost like looking back at the pre-cell phone days - the first thought that pops into my mind is how did we even make it back then..

[SteveW]

Originally Posted by Scrumhalf

I love my iPhone. Looking back at a dumb phone is almost like looking back at the pre-cell phone days - the first thought that pops into my mind is how did we even make it back then..

Yes, how did we travel anywhere before we had GPS and Google Maps in the palm of our hand? How did we remember who was in that old movie without being able to check imdb in a bar? How did we ever answer those nagging questions (Who was the last guy to walk on the moon?) without being able to check Wikipedia while on vacation? (* answer below)

It's like that with lots of technology advances. I remember that I lived before there were ATMs everywhere, I just don't know how I lived. I flew places at a time when you had to wait to get a paper ticket in the mail from your travel agent, when only travel agents could easily check and compare flight schedules, and you couldn't check in online before going to the airport... I'm very old, so I could go on, but I won't.




SW
* Gene Cernan

[MOTOhooligan]

I had a Palm Treo 700wx, Motorola Q & UT Starcom PPC6800 for work but I've never used a smartphone as my primary device. Right now I'm thinking next handset will, more than likely, be a CDMA iPhone when AT&T's exclusivity goes away and I can get it on Verizon.

I'm still not sure, though. I don't know if I want a touch screen or a full QWERTY keyboard, I'm quite fond of preditive text and really don't know if I want to pay more for data just because it's "cool." Smartphones can do a lot of wonderful things but for someone like me, who primarily texts, secondarily uses voice service and rarely uses data, a normal handset might still be better-and less expensive-than a smartphone.

[Gamer03]

I have been using PDAs/Smartphone’s since 2005. In 2005, before I started using Smartphone’s, I bought my first PDA (a Palm LifeDrive Mobile Manager). In 2006, my first Smartphone was the Palm Treo 700wx (with Sprint SERO). From that point forward, Smartphone’s would be used as my main device. I would also carry around a spare flip phone from 2005 to mid-2008 due to having a flip phone on a FS plan (secondary line) in order to be connected with my family. In late 2006, I decided to give the Motorola Q (with Verizon) a try. In 2007, I decided to upgrade my Palm Treo 700wx to a Palm Treo 755p on my Sprint SERO plan. In 2008, my family signed up with AT&T, so I decided to give the AT&T Tilt a try. In late 2008, I decided to try a BB, so I paid retail and upgraded to a BB Bold. Earlier this year, AT&T wasn't working out for us, so we switched back to Verizon and I am now using a BB Storm.

[Matt]

I think I still prefer a real keyboard to a virtual one, but I'll be sure to "upgrade" to a full set of keys for the letters on my next phone, up from the mini compromise I have now with my Pearl.