Smartphone shipments are expected to grow 21% to 224 million this year, while total shipments of mobile handsets are projected to hit 1.3 billion in 2010, according to new forecasts from ABI Research.
The firm said that the low-cost limited-function handsets, along with other low-cost models, will notch up 219 million sales in 2010. 3G and advanced technologies will drive mobile handsets market expansion over the next five years that is projected to surpass 1.7 billion in 2015.
According to "Mobile Devices Market Forecast Analysis" report, 2.5G handsets still hold the lead in the market, set to account for approximately 50% of this year’s total handset shipments. The decline in 2.5G handset shipments is expected to accelerate, taking 2.5G to 25% of the total market by 2015.
ABI Research expects 3G handsets market to show an 8% increase compared to last year, while total 3G handsets shipments will surpass 2.5G from 2011 to take the lion’s share in 2015 with 68%.
Jake Saunders, vice president of forecasting at ABI Research, said: "While there is considerable fanfare and interest around the latest iPhone and Android phones from Apple, HTC and Motorola, ‘White Box’ or ‘Shanzai’ handset manufacturers are rapidly reshaping the low-cost handset segment as they redefine the ‘look and feel’ of the low-cost/ultra-low-cost segments."
"Moving to 3G technologies and beyond, increasing demand for smartphones is a key factor that will drive market expansion over the next five years," Saunders added.
