Frost & Sullivan: Advanced Applications of Smartphone Continue to Keep its Demand High, Despite the Economic Slump

LONDON, July 1, 2010 - The smartphone market is experiencing robust growth, despite the economic
downturn. Consumers are increasingly seeking well-designed devices with
innovative features and applications such as touch screen technology,
wireless fidelity (Wi-Fi) and location-based service (LBS). As it appears
that, in the next couple of years, software will play a major role in the
mobile handset market, mobile operators are likely to collaborate with
significant participants from the Internet community, the media and the
entertainment industry, to further boost the appeal of advanced handsets.

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New analysis from Frost & Sullivan (www.wireless.frost.com), The
Race of Smartphones, What Next? Impetus in OS and Technology Innovation in
Smartphones, finds that at the end of 2008, 147.8 million smartphones were
shipped in North America, Europe, Asia Pacific and Latin America. This is
expected to grow to 442.9 million by 2014, with Asia Pacific accounting for
161.9 million smartphones and Western Europe for 85.4 million devices.

"The smartphone market will remain highly fragmented in the next five
years," says Frost & Sullivan Senior Industry Analyst, Saverio Romeo.
"Although traditional participants across the smartphone value chain will
continue to dominate the market, there will be more collaboration between
consumer electronic device manufacturers, and new technology vendors will be
the trendsetters in the mobile market."

Consumer need for ultimate converged devices, in support of multiple
functionalities such as touch screen, camera/video support, dual simcard
provisions, Wi-Fi and integrated GPS, is anticipated to fuel the demand for
smartphones. Furthermore, social media and Internet communities as well as
application developers are likely to gain control and eminence in the
wireless and mobile market, resulting in more collaboration across the value
chain. Innovation, combined with product differentiation, will prove to be
one of the most prominent factors in achieving significant growth.

However, falling average sale prices will continue to influence the
revenue growth rate of this market. Additionally, diversified operating
system (OS) platforms, intense competition among smartphone manufacturers and
poor battery life of smartphones to support multiple access technologies will
affect the smartphone market in the next 4-5 years.

"Users are moving towards a complex and rich mobile experience made of
communication, entertainment and productivity services. The smartphones are
the right devices for this experience. Their role will increasingly become
vital in the mobile communications market driving diffusion of new services
and applications," concludes Mr Romeo.

If you would like to receive more information on this study, please send
an e-mail to Joanna Lewandowska, Corporate Communications, at
joanna.lewandowska@frost.com, with your full name, company name, title, and
contact details.

The Race of Smartphones, What Next? Impetus in OS and Technology
Innovation in Smartphones is part of the Mobile & Wireless Growth Partnership
Services programme, which also includes research in the following markets:
The Use of Social Network Analysis in the Telecommunications Industry; The
Modes of the Mobile Content Industry - The Stores and the Web, Sustainability
in Telecoms, Mobile Broadband in Central and Eastern Europe, and The Impact
of Mobile VoIP on Next Generation Cellular Networks. All research services
included in subscriptions provide detailed market opportunities and industry
trends that have been evaluated following extensive interviews with market
participants.

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The Race of Smartphones, What Next? Impetus in OS and Technology
Innovation in Smartphones

M59D - 65

    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

Joanna Lewandowska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com