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Camera Phones 
Market for Smartphones and Camera Phones Heating Up

SCOTTSDALE, Ariz., September 16, 2003 - In recent quarters, shipments of
smartphones and camera phones have been heating up, according to
In-Stat/MDR (http://www.instat.com). The high-tech market research firm
reports that, in Q1 of this year, 1.7 million smartphones shipped around
the world, and the pace appears to be quickening. Similarly, camera
phones have been moving at a rapid pace. For all of 2002, camera phones
shipments totaled about 18.2 million units, and Q1 2003 shipments were
7.8 million. 

However, according to Neil Strother, a 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." For smartphones high prices, technical glitches, bulky
devices, a lack of compelling enterprise and consumer applications, and
inadequate network capacity, are all presenting a barrier to acceptance.
"In addition, the perception that the devices are mainly for mobile
professionals, still lingers," says Strother. Camera phones, on the
other hand, are hindered by the need for better image sensors, more
on-board memory for picture storage, longer battery life, and network
improvements to make picture sharing easier and interoperability a
reality. Privacy concerns are also plaguing the market. 

In-Stat/MDR has also found that:


* Both of these handset sub-segments are in for solid growth over
the next five years. Smartphones will be commonplace by 2007, and camera
phones should be ubiquitous. These handset categories are already
starting to merge, and, by 2008, it’s likely there will be little to
distinguish them. New handsets at that time will be "smart" in a variety
of ways, and a built-in camera will be standard.

* Smartphones will grow 94.5% on a compound annual basis through
2007.

* Shipments of handsets with an integrated digital camera will
show a compound annual growth rate of 53.2% through 2007. 

The report, "Market for Smartphones and Camera Phones Heats Up"
(#IN030942WH),offers five-year shipment forecasts by air link
technology, five-year regional forecasts by air link, and five-year
manufacturer-revenue expectations. Other highlights of this report on
the future of smartphones and camera phones include smartphone operating
system market share forecast, recent moves by carriers to take advantage
of the growth, challenges and threats facing these devices, and future
opportunities. To purchase this report, or formore information, please
visit: http://www.instat.com/catalog/Wcatalogue.asp?ID=66 or contact
Rick Vogelei at 480-609-4533; rvogelei@reedbusiness.com.The report is
priced at $2,995.00 U.S. Dollars.

About In-Stat/MDR
In-Stat/MDR (http://www.instat.com) offers a broad range of information
resources and analytical assets to technology vendors, service
providers, technology professionals, and market specialists worldwide.
The company stands alone in its ability to integrate both supply-side
and demand-side research methodologies into a single comprehensive view
of technology markets and products. This capability relies on a unique
ability to cover the entire value chain from engineering-level
technology, through equipment, infrastructure, services and end-users.
In-Stat/MDR is part of the Reed Electronics Group, a division of Reed
Elsevier (www.reedelsevier.com), a world-leading publisher and
information provider. With over 38,000 employees worldwide, Reed
Elsevier operates in the science & medical, legal, education and
business-to-business industry sectors, providing high value and flexible
information solutions to professional end users, with increasing
emphasis on the Internet. 
for great media relations, contact Davis Marrin Communications
 


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