Smartphone sales eat into laptop market

Smartphones are set to increasingly replace laptops during the next five years, analysts predict.

In-Stat said that the smartphone market will grow at more than a 30 per cent compound annual growth rate for the next five years, taking an increasing share of the overall phone market that is otherwise growing in single digits.

The research firm noted that the unit volume of smartphone shipments globally also exceeds the unit sales for laptops.

Smartphone use will grow mostly as a laptop replacement, according to the In-Stat report, Smartphones 2007: The ARPU Generation Machine.

Users are experiencing "significant value" from their smartphones, and are downloading more applications and generating higher usage as measured by average revenue per user for wireless carriers.

"Because of the value users are finding, organisations are slowly taking ownership of smartphones and data applications used for business purposes," said In-Stat analyst Bill Hughes.

"Rather than having overcomplicated reimbursement plans, organisations are finding it more expedient and economical to treat wireless voice and data services as a business expense when they use smartphones."

Recent research by In-Stat forecasts that all smartphone operating systems (other than Palm OS) will grow at double digits over the next five years.