Smartphones still on the Rise

What an exciting time for smartphone manufacturers. Turn on any stock analyst show and you will hear mention of this segment in our markets. Even though RIM introduced the new Tour world phone, Research in Motion's stock is sliding today because of more competition. I am a big RIM fan but this may not be such a bad thing. Apple is introducing its new I-Phone, Google's G-1 Android phone has sold over a million devices, Samsung just announced 4 new smartphones, and Palm introduced its Pre on the Sprint network. What is next, Nokia gaining demand domestically again?

The winner in all of these new launches is the you, the consumer. We are seeing a more universal approach by the carriers to offer devices that meet our needs. Social media browsing, browsing in general within the data plans are becoming easier to use. There is plenty of memory and the data speeds are improving, 4G is also around the corner. The quality of the camera's are catching up to what Best Buy puts on its digital camera selection. You can post a video on YouTube in minutes. We are an e-mail centric nation now, how does anyone live without e-mail in their hands? This one factor alone is pushing demand.

I think there is a cool factor also here. It is a less expensive way of "keeping up with the Jones" People cannot be approved for refinance their homes so why not flash their smartphone bling. But there is no doubt a more effective approach to communicating with these devices. What was once an Enterprise device only, now the smartphone has caught the attention of the masses.

The market share for smartphones is less than 20% of the market. So there is plenty of room for growth for these manufacturers. The economy dominated with recession yes but it sure is impressive to see this segment prosper. The Internet is literally in our hands now and regardless of the soft economy, the demand continues. Buy their stock or buy their devices, either way, but do not let this momentum pass you by.

Welcome to the Future

Mike

Blackberry versus I-phone market share

Well, the data is hot off the press: Smartphone purchases in the US shot up 68% in 2008. We now buy smartphones in greater quantities than our Western European counterparts. It is not just a phone anymore, it is mobile e-mail, mobile web, mobile applications for data, navigation, synchronization with Outlook, calendars, contacts, notes, QWERTY keyboard for text. There are endless features that present themselves in the form of a smartphone.

Research in Motion still holds a convincing 46% market share while Apple and its I-phone hold an impressive 21%. Palm, Samsung, and Nokia are on the radar for market share but it is clear that RIM and Apple are our leaders. RIM has agreements with all the major domestic carriers, even ATT. The Apple I-phone on the other hand is sold exclusively through ATT. It is impressive that Apple is on this list like this in such a short time. But I believe this exclusive agreement will prevent ATT from expanding its market share much more dramatically. The fact is, ATT is not known for its network. If the professional consumer (who predominantly is purchasing these smartphones) does not have adequate choice or coverage, ATT will struggle to overcome RIM. Make no mistake, both of these devices have brought a win win to the consumer and the carriers. The consumer has a more intelligent advantage to do business and work while the carriers are collecting the data fees from month to month. I believe though that RIM and Apple will have a hard time sustaining growth and demand for smartphones like we saw from 07 to 08.

I find it promising to see another American company pick up the slack for sluggish Motorola and compete with this giant from Canada (RIM)and the likes of Korean international vendors such as Samsung or LG. I just hope on the next I-Phone generation that Apple will unlock its technology away from an exclusive arrangement with ATT. Verizon which has now merged with Alltel, and Sprint Nextel are powerful domestic partners to grow their share with.

Welcome to the Future.

Mike