What will smartphone market look like in 2010

According to analyst Neil Mawston from research firm Strategy Analytics (SA)—With top handset makers, like Samsung Electronics and LG Electronics, planning to sharply increase their very low smartphone sales; while new players like Huawei and Dell strengthening their offerings in 2010; Smartphone market is going to become fiercely competitive in 2010. A good news for consumers, as they will get better phones at cheaper prices, but a not so good news for vendors who will see a downward pressure in prices and margins.

CCS Insight analyst agrees with Nell’s observation that an influx of new players resulting in an oversupply of devices and aggressive pricing will strain profit margins of the vendors in 2010.

CCS insight analyst adds that companies with a tightly integrated device and service offering -- like Apple and RIM -- will be the winners in 2010.

I also feel that with most companies cutting on basic phones and moving on to smart phones (so that they can increase the share of services in their revenue. Plus increase the smartphone base in developing markets; where mobile phone reach is growing very fast); a negative pressure on vendor prices and volume is bound to come.

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