Smartphone Will Be Next Phone For ManySmartphone Will Be Next Phone For Many

(click image for larger view)
Apple iPhone 3G S

Consumers are increasingly upgrading their cell phones to more sophisticated devices, and a new report from Yankee Group said 41% of U.S. consumers are likely to choose a smartphone for their next phone purchase.

The report, titled "Latest Palm Device 'Pre'-views Future OEM-Operator Relationships," said the average consumer has owned four mobile phones, and their appetite for enhanced features makes devices like the iPhone, BlackBerry, and Android-based handsets increasingly appealing.

Like many segments of the economy, the mobile phone industry is expected to have a down year because of the global economic recession. But smartphones are still expected to increase in sales, and Yankee Group expects these devices to account for 38% of all handsets shipped by 2013.

The proliferation of smartphones also will have a big impact on the relationship between the carriers and the device manufacturers, the report said. U.S. carriers have long had tight control over what devices got on their network, but handsets like Apple's iPhone have shifted the dynamic somewhat. The iPhone bears very little AT&T branding, and customers deal with AT&T only when they're paying the bill.

The report said the growth in smartphones will lead to increased collaboration between mobile operators and handset manufacturers. The report singled out the recent launch of the Palm Pre as a good example of this new type of relationship.

"Sprint and Palm are two companies desperate for a blockbuster hit," said Chris Collins, Yankee Group senior analyst, in a statement. "And as such, they are either the perfect or worst possible partners for one another. The fate of both companies relies on the success of their alliance around the Pre."

The mobile operators are seeing revenue decline from traditional voice services and smartphones open up lucrative new revenue streams with mobile data packages. For the manufacturer, a strong relationship with the carrier will likely include strong marketing, and this could lead to more customers buying the smartphone.

As smartphones become equipped with more desktop-like capabilities, road warriors may soon be able to ditch their laptops. information looked at how smartphones could potentially become replacements for laptops, and the report can be downloaded here (registration required).