CEA Says Smartphone Sales to Increase with Demand for Data and Entertainment

by Shane McGlaun

CEA, the team responsible for the annual International Consumer Electronics Show (CES) released a new report today that says smartphone sales will be driven by the increased demand for entertainment and data services. The CEA estimates that in 2007 smartphones accounted for 15% of the total shipped handsets.

Sales of smartphones from factory-to-dealers are expected to be more than $8 billion in 2008. CEA’s study says that this increase in sales for smartphones expected in 2008 is from an increased demand for mobile entertainment and data services.

According to the study 40% of American adults plan to purchase a new cell phone this year. Currently only 11% of adult cell phone powers say they own a smartphone. "While smartphones were once mostly for business use, they are becoming mainstream, as new wireless services like navigation and Internet access are included in more handsets," said Steve Koenig, CEA's Senior Manager of Industry Analysis. "These devices will slowly but surely supplant standard handsets."

One of the other driving factors expected to increase the demand for smartphones is the 700MHz spectrum auction the FCC is holding. Once that frequency band is available and mobile services are deployed on the frequency, consumers will see more availability of mobile wireless connectivity, faster speeds, and hopefully lower data plan prices. Things are looking good for smartphones in 2008 and years to come.

Via CEA