Smartphone shipments will grow at a 44 percent CAGR (compound annual growth rate) over the next five years, but their “big breakout period” remains 12 to 18 months away, according to In-Stat/MDR, which has released a market research report on the smartphone market.

According to the In-Stat/MDR report “Smartphones Rising: 10 things you should know about this segment,” smartphone growth will be driven by lower prices, smaller and better devices, and better integration of voice, email, and PIMS functionality. Business users looking for integrated voice and data services are especially likely customers, the report says.

Symbian will lead the segment during the next five years, according to the report, with Microsoft moving into second place by 2006. Linux is not mentioned in the report's key findings summary, nor in its table of contents despite other analyst projections to the contrary.

Despite a generally rosy outlook, the smartphone segment faces challenges, according to In-Stat/MDR, including a lack of 3G networks, poor battery life, and securitiy concerns.

The In-Stat/MDR smartphone report draws from a survey in which 9 percent of respondents have smartphones. Among respondents, Sprint PCS customers were most willing to pay extra for a smartphone.

The report includes end-user opinions about smartphones, a five-year shipment forecast, a regional breakdown of smartphone shipments, and smartphone OS market shares. Further details are available online.

 
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