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Tag: market-data

  • Skype and eBay Settle with Joltid

    Skype and eBay announced they has reached a settlement agreement with Joltid and Joost N.V. that gives Skype ownership over all software previously licensed from Joltid.

    It also ends all litigation currently pending against the investor group and eBay at the closing of the acquisition (the investor group led by Silver Lake had previously entered into a definitive agreement to acquire a majority stake in Skype from the company).

    As part of the settlement agreement, Joltid and Skype founders Niklas Zennström and Janus Friis will join the investor group, contributing Joltid software and making a significant capital investment in exchange for a 14 percent stake in Skype.

    As a result, Silver Lake and other investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56 percent of Skype and eBay will retain 30 percent.

    eBay will receive approximately $1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million.

    The deal, which values Skype at $2.75 billion and is not subject to a financing condition, is expected to close in the fourth quarter of 2009.

    “We will now have ownership of the software previously licensed from Joltid, so we’ll be in control of our technology future,” Josh Silverman, president of Skype, wrote at Skype’s blog.

    “All litigation against eBay, Skype and the investor group ends, so we’ll be free to concentrate all of our efforts on building the world’s greatest communications software,” he added.

    Commenting on the agreement on behalf of the investor group, Silver Lake Managing Director Egon Durban said: “We are very pleased to have the litigation resolved. We remain confident in a great future for Skype, and we look forward to working with Niklas, Janus and the other investors as partners to help the company achieve its full potential.”

    The investor group will no longer include Index Ventures, which has withdrawn from participation. “Although Skype has the potential to be a great investment, the deal terms changed for Index such that it no longer matches our investment criteria and thus we have decided not to participate in the transaction,” said Danny Rimer of Index Ventures.

  • Motorola Becomes a First-Mover Again

    “Android provides differentiation today, but may not tomorrow,” says recent Canalys report on Motorola’s market strategy.

    During its Q3 earnings call on 29 October, Motorola’s Co-CEO Sanjay Jha announced the company’s quarterly profit of $12 million, up from a $397 million loss a year ago.

    Canalys analysts state this was primarily driven by aggressive cost-cutting and the improvement was reflected in a stock price rise of more than 12%.

    Despite the overall positive result, the troubles faced by Motorola’s handset division continue. During the quarter it recorded sales of $1.7 billion, but made a loss of $183 million, shipping just 13.6 million devices.

    More positively, less than two months after announcing the CLIQ, Motorola introduced its second Android smart phone – the DROID – earlier in the week. The DROID is the first announced phone to support Android 2.0, with all the enhancements that brings.

    DROID will be available in the US exclusively from Verizon Wireless from 6 November. It will cost $199.99 with a new two-year contract after a $100 mail-in rebate.

    According to the report, Verizon is pitching the DROID aggressively against Apple’s iPhone and the device fills an important gap in the operator’s smart phone portfolio.

    “For Motorola, this partnership is an invaluable opportunity to rebuild its status within the handset market and draw attention to its Android-centric strategy,” it says.

    For the past year, Motorola has put significant effort into streamlining its platforms, having previously produced an array of smart phones on Windows Mobile, Symbian and various forms of Linux.

    The company aims to reduce its reliance on feature phones and will hope to be able to push Android down into higher volume, but more price-sensitive segments over time.

    Canalys claims the quick rollout of DROID following the CLIQ demonstrates that the company is moving in the right direction, having suffered from portfolio stagnation following the earlier tremendous success of the RAZR.

    Both the DROID and the CLIQ may do well in the US in the short term, but there can be no room for complacency. Over the coming months the market will see a huge influx of Android devices from top-tier handset brands as well as from vendors very focused on delivering devices to operators at lower cost.

    “For Motorola to maintain momentum it will need to be able to differentiate itself from the many other Android products that will be available in 2010, and it will need to do this on the international stage. China will be critical. Motorola has enjoyed success with its Linux devices there in the past and it will need to replicate this success and build upon it with its Android devices.”

    Analysts conclude that the company will also need to ensure that the devices it produces compete on quality as well as price, ensuring that a focus on getting Android into the middle-tier of the market does not result in compromises that lead to products that deliver an inferior user experience.

  • AFCOM Survey: Most Data Centers Not Ready for Cyberattack

    Significant findings of AFCOM’s 2009/2010 Data Center Trends survey reveal that though threat of cyber terrorism is real, it is not being adequately addressed by the world’s keepers of the most confidential financial, military and personal data.

    Survey also reveals that despite hype around cloud computing, only 14.9 percent of data centers have deployed cloud solutions to date – and it shines a new light on the fate of mainframes.

    In addition, it reveals the government is behind its private industry counterparts in terms of greening initiatives.

    Meanwhile, it shows that the mainframe may be losing its place in worldwide data centers, as servers become more capable.

    And cloud computing, despite the hype, hasn’t pushed beyond 15 percent acceptance at this point. In comparison, 73 percent have implemented virtual processing.

    Data center greening

    The survey re-iterates that greening of the data center is no longer just a concept – it is actually taking place, and on a large scale, with 71.3 percent of all respondents indicating they are actively engaged in greening initiatives at this time.

    And while 71.3 percent are, in fact, engaged in greening, only 42.2 percent have a “formal” greening initiative.

    According to respondents, the most important results they have experienced as a result of implementing green measures are in power efficiency, 60.8 percent report they are using less power and 51.4 percent have implement cooling efficiency strategies. In addition to power and cooling efficiencies, 11.5 percent also report a significant savings in water usage.

    Data centers & cyber terrorism

    Data center professionals must be well-equipped to handle and respond to cyber terrorist attacks, but according to AFCOM’s survey, there’s considerable room for improvement.

    Respondents revealed that 60.9 percent of all data centers worldwide officially recognize cyber terrorism as a threat they need to deal with, but only a little over one-third (34.4 percent) have included it in their disaster/recovery plans, which would include their best defense plans if attacked.

    Only one in four, or 24.8 percent, has addressed cyber terrorism in their policies and procedures manuals and only 60.2 percent have a written policies and procedures manual.

    Meanwhile, less than one in five, or 19.7 percent provide any cyber terrorism employee training. On the positive side, however, 82.4 percent report that they do perform background security checks on all potential new employees, another solid defense against cyber terrorists.

    Data center consolidation

    As the economy suffers, more companies have traditionally looked to consolidation as a method of saving money. The economic downturn we are experiencing today is no exception, with 62.1 percent of all respondents either already in the process of consolidating one or more data centers, or seriously considering it.

    More than half of respondents (52.1 percent) plan to relocate their newly consolidated data center to another existing facility, or build an entirely new one to accommodate the additional requirements.

    Emerging technologies

    According to the survey, the technologies with the highest levels of adoption in today’s data centers are: virtual processing, implemented by 72.9 percent of all respondents, Web applications (70.4 percent), automation (54.8 percent) cluster computing (50. percent), and cloud computing (14.9 percent).

    Surprisingly, in addition to the slim 14.9 percent who utilize cloud computing, this technology has been considered by an additional 46.3 percent, but never implemented.

    “Our analysis shows that data center managers need to develop more comprehensive cyber terrorism policies, and get more aggressive in greening, particularly in government agencies where greening lags behind private industry. Finally, it’s time to decide where the mainframe is still viable and needed, and where high-end servers can do a more efficient job,” said Jill Eckhaus, CEO of AFCOM.

    AFCOM is the data center association that represents both the IT and facilities side of the data center. Respondents, part of AFCOM’s 4,500 member data center sites, represent 27 countries, 83 percent in the U.S. and 17 percent overseas; 60 percent are responsible for Information Technology, 31 percent Facilities and 9 percent represent other roles in the data center

    AFCOM 2010 Data Center World will take place March 7-10, 2010 at the Gaylord Opryland Resort & Convention Center in Nashville, TN.

  • Application Stores as a Great Opportunity for Mobile Navigation


    Application stores are presenting a new, significant channel for the promotion and distribution of mobile applications in EMEA. In recent report Canalys analyzes how important will this channel become for navigation applications, and what opportunities does it present.

    “Turn-by-turn navigation is one of the few types of mobile application that consumers have shown a willingness to pay a valuable premium for. In part, this is because these solutions replicate the dedicated, portable navigation device (PND) proposition that consumers are used to associating with a price tag of up to €250 – and even more for some specialist niche products,” says Canalys.

    But, encouraged by existing application stores, there is an expectation that the applications found in app stores are cheap or even free: certainly Apple has seen mostly free applications downloaded from its store.

    Navigation offerings therefore need to be priced competitively to succeed, while preserving sufficient margins for developers.

    Canalys anticipates that as perpetual solution prices inevitably fall, vendors will look to subscription business models, at least for additional premium content, to deliver higher returns from their customers.

    “Vendors must also watch closely how free or very cheap basic navigation applications, such as Nav4All, AndNav2 and Roadee, perform. Though lacking brand recognition and usually based on community-generated maps of questionable and varying quality, such as those from the OpenStreetMap project, consumer expectations of these solutions are low and relatively simple to exceed,” analytics say.

    Canalys claims if these applications can give a user experience good enough for basic use cases, reviews and ratings and viral promotion could see them taking customers away from established vendors.

    App Marketplace

    Application stores, meanwhile, are already establishing themselves as consumers’ first port of call when looking for mobile applications or device personalisation and enhancement options.

    According to the report, technological and optimisation barriers to mass-market uptake of phone-based navigation in EMEA are continually being eroded. Of the 26.1 million smart phones that shipped in EMEA in H1 2009, 22.6 million (86.7%) had application-accessible integrated GPS chipsets, compared with just 36.0% for the same period in 2008.

    In H1 2009, 42.3% of GPS-integrated smart phones that shipped in EMEA used a touch-screen as the primary input method. Meanwhile, Nokia continues to bundle free periods of turn-by-turn navigation with the vast majority of its S60 smart phones and to offer navigation-focused devices or SKUs, such as the 6710 Navigator and the 5800 Navigation edition, respectively.

    Other handset vendors, such as HTC and Samsung, as well as some operators, have also now finally started to not just pre-install, but actively promote navigation solutions, usually powered by third-party software.

    “All this has helped create a market environment, certainly in the developed markets of Europe, where consumers are now well aware that they can use mobile phones for satellite navigation,” says Canalys.

    Combined with growth in mobile application marketplaces and the accompanying consumer interest in browsing and discovering applications, the EMEA market for phonebased navigation offers exciting growth potential.

    Canalys forecasts that the user base for phone-based navigation in EMEA will grow by 40% year-on-year to 6.3 million in 2009, and by 54% to 9.7 million in 2010.

    How to exploit the new opportunity?

    With June’s iPhone OS 3.0 launch, Apple allowed turn-by-turn navigation applications to be developed for the iPhone and sold via the App Store. Navigon quickly got its MobileNavigator application into the store, beating TomTom, which had already shown its application at Apple’s Worldwide Developer Conference, analyzes Canalys.

    Navigon evidently saw a first-mover advantage and quickly became a leading application on the German and UK stores, where its brand is established, priced at €99.99 for European map coverage, or €50 to €70 for a single country or group of countries.

    The Navigon application, and the similarly priced TomTom solution that followed just over a month later, were positioned as premium applications at price points comparable to entry-level PNDs.

    “ALK, however, took a different approach, quickly placing its perpetually licensed CoPilot Live applications in the store at the much more competitive, affordable prices of €33.99 for specific groups of European countries (eg, the German-speaking DACH countries or Benelux), or €79.99 for Europe-wide coverage.”

    The research says ALK, with a considerably less well-known brand than TomTom, has managed to become a strong contender among turn-by-turn apps on the App Store through being competitive, and now has the highest grossing paid-for application in the UK.

    TomTom’s approach, meanwhile, has been less hurried, for better or worse, and has relied on its brand strength to deliver results and elevate it above a need to enter into a price war. It is also focused on delivering a PNDlike experience as far as possible.

  • iSuppli Reports Strong DRAM Market Growth

    The DRAM industry in the second and third quarters of 2009 posted the strongest sequential growth in revenue and pricing seen in at least five years, indicating that the recent market rebound is real and is likely to continue into 2010, according to iSuppli.

    Global DRAM revenue rose by 35 percent in the third quarter compared to the second quarter, according to a preliminary estimate from iSuppli. This follows a 34 percent increase in the second quarter.

    The revenue rise in the second quarter brought an end to a three-quarter losing streak that began in the third quarter of 2008. Revenue had fallen by 19 percent in the first quarter of 2009, plunged by 38 percent in the fourth quarter of 2008 and decreased by a moderate 1 percent in the third quarter of 2008.

    Meanwhile, global DRAM Average Selling Prices (ASPs) rose by 21 percent in the third quarter compared to the second, following a 19 percent rise in the second quarter.

    Pricing declined by 10 percent in the first quarter of 2009. The second quarter marked the first sequential increase in DRAM pricing since the fourth quarter of 2006.

    “Third-quarter results from major suppliers show that the DRAM industry recovery is no mirage,” said Mike Howard, senior analyst, DRAM, for iSuppli.

    “The continued increase in prices comes as another indicator that the DRAM market is emerging from what has been a long and painful slump.”

    iSuppli says the global DRAM market has been declining on an annual basis since 2007. Revenue decreased by 7.5 percent in 2007 and plunged by 25.1 percent in 2008.

    Despite the strong recovery in the second and third quarters, extremely weak conditions in the first quarter mean that global DRAM market revenue is set to decrease by 12.9 percent in 2009, according to the company’s preliminary estimate.

    The market’s strong performance in the second and third quarters likely presage continued strength in the DRAM market.

    “Third-quarter earnings from Samsung, Micron and the Taiwanese DRAM manufacturers point to increasing sales and further progress toward profitability,” Howard said.

    “Samsung achieved profitability during the third quarter, while Micron’s results indicate the company is on its way back to the black. Recent sales results from the Taiwanese DRAM companies are also positive for DRAM. Collectively, the five Taiwanese DRAM suppliers—Inotera, Nanya, Powerchip, ProMOS and Winbond—saw monthly revenues increase rise by 15 percent per month for the last three months.”

    iSuppli expects supply levels to remain fairly consistent in the fourth quarter. DRAM demand is expected to improve in 2010 in concert with the general global economic recovery.

  • Research Forecasts Flat Panel Display Industry Slowdown in Q4, Recovery in 2010

    According to the latest DisplaySearch Quarterly Worldwide FPD Forecast Report, global flat panel display revenues for 2009 will be $87.6B, down 15% Y/Y from 2008.

    The major reason for the decline is erosion in large-area TFT LCD panel prices compared to 2008, despite the fact that the TFT LCD market started to recover in Q2’09.

    Despite the gloomy forecasted results for 2009, the market is expected to recover in 2010 with a 5% compound annual growth rate and revenues of $93.3B, the research shows.

    According to David Hsieh, vice president of DisplaySearch, 2009 represents a “drastic change” for the whole FPD industry.

    “The industry faced many critical challenges in the end of 2008 due to the global economic recession and the resulting drop in demand. However, as the market demand began to recover in early 2009 and the global economic situation is expected to continue to improve, we believe that the worst time for the industry has passed and the FPD market will experience growth after 2009,” he said.

    a-Si TFT LCD continues to be the largest segment in all FPD technologies. However, AMOLED shows the strongest compound annual growth rate, 179% from 2008 to 2012, as suppliers solve technical and financial problems.

    DisplaySearch says there are currently eight drivers for FPD growth in the next ten years: new applications and markets, new entrants and processes, new concepts and specifications, as well as new business and practices.

    Many of these are inspired by the downturn in the FPD industry in late 2008 and early 2009, which stimulated the FPD industry to find different strategies, markets and solutions.

    Other research from iSuppli says small and medium LCD suppliers are preparing for a Q4 slowdown.

    “Small/medium display panel vendors are prepping for what they believe will be a deceleration in demand in the fourth quarter – traditionally a slower period because of the end of the holiday buying rush,” says iSuppli.

    Furthermore, Tier-1 OEMs in the third quarter pulled in orders for the holiday season and the Chinese Golden Week. This allowed panel suppliers to achieve 93 percent of their third-quarter 2008 shipment levels in the first two months of the third quarter of 2009 alone.

    iSuppli analyst Vinita Jakhanwal claims suppliers are planning to reduce capacity utilization in anticipation, but the decline in capacity will allow the industry to better manage price declines.

  • What Do Consumers Do With Their Phones?

    A recent Canalys consumer study, which surveyed over 3.000 people across France, Germany and theUK, looked at what features consumers are using on their phones.

    The first conclusion is that the use of data services is limited outside of smart phone owners and that customers on SIM-only contracts consume more data than their pre-paid counterparts. “The results go some way to quashing the expectations that SIMonly customers will only use voice and text,” says Canalys.

    When comparing the usage habits of respondents with pre-paid contracts versus those with SIM-only contracts, usage was higher in every category for individuals with SIM-only packages.

    For example, 27% of SIM-only users regularly browsed web sites on their handsets compared with just 14% of pre-paid users. Equally, the number of customers accessing social networking services on their mobile phones was considerably higher among SIM-only users (16%) when compared with pre-paid users (7%). The use of e-mail was also greater among those who subscribed to SIM-only deals (23%) versus consumers on pre-paid tariffs (16%).

    According to Canalys, operators will hope that the uptake of data services will steadily increase across their subscriber bases. “The major challenge that operators face is ensuring there is a sufficient penetration of handsets that are capable of accessing connected services, a questionable factor, especially looking at the difference in usage between handset brands across data services,” the report says.

    The other conclusion is that social networking on mobile phones remains a relatively small, but growing service. The research shows that despite the large usage figures quoted by companies such as Facebook, usage of social networking in the mass market remains limited.

    Only 10% of end users regularly accessed this type of service from their mobile phones. iPhone users were by far the most active, with almost half regularly accessing social networking services. Figures for BlackBerry (27%) and HTC (23%) users were lower than those for Apple, but were still significantly above the average.

    “These results show that usage of social networking services is higher among smart phone users, and as the market leader in the smart phone market, it is fair to assume that usage on Nokia’s flagship products would be similar. Usage of social networking services across all of its products, however, was only 7%,” says Canalys.

    When looking at e-mail usage on mobile phones, BlackBerry owners were the most active with 68% regularly using e-mail on their handsets. Owners of handsets from Apple (67%) and HTC (53%) also used e-mail far more regularly than those who owned handsets from the leading vendors, where on average only 15% of end users were regularly using e-mail on their phones.

    Web site browsing also revealed contrasting usage patterns: 73% of iPhone users regularly browsed web sites on their handsets; 60% of BlackBerry owners and 56% of HTC owners had similar habits.

    Conversely, just 8% of Motorola owners regularly browsed web sites on their phones and, though web browsing was higher on phones from LG (18%), Samsung (17%), Nokia (16%) and Sony Ericsson (16%), it was still significantly below that of iPhone users.

    Navigation services were cited by 36% of end users as a feature that they wanted on their next mobile phone that they did not have today. The majority of respondents were keen to have an in-car turn-by-turn solution on their next phone.

    “But as many navigation solution providers are now discovering, it is not good enough just to supply the software. For in-car navigation to be successful on mobile phones the experience of portable navigation devices (PNDs) needs to be matched or exceeded. This means that car kits or cradles need to be supplied alongside the software at the time of purchase. In addition, events such as incoming calls and other alerts need to be handled in a way that provides minimal disruption to the navigation experience,” analysts conclude.

  • Large-Sized LCD Panel Business Becomes Profitable Again

    After a year of losing money or generating zero return, the global large-sized (10” or larger) LCD panel business returned to profitability in the third quarter, according to iSuppli’s latest research.

    In an example of market trends, the 32-inch HDTV LCD, which is the most popular dimension for large-sized panels, generated a 13 percent profit for the LCD industry in the third quarter. In contrast, the 32-inch panel incurred losses of 12 percent in the second quarter of 2009, 31 percent in the first quarter of 2009 and 23 percent in the fourth quarter of 2008.

    The last time the LCD industry cut a profit on 32-inch HDTV panels was in the second quarter of 2008, when they generated a 19 percent return.

    Analysts say the main reason LCD panels have not been profitable for so long is the market’s extreme state of oversupply, which resulted in LCD panel pricing that was below manufacturing costs. However, reductions in production and utilization rates, combined with better-than-expected panel demand from China’s television market, helped spur the return to profitability in the third quarter.

    A shortage of glass used to make LCD panels also contributed to the tightness of the panel market during the third quarter, further boosting prices and profits.

    Worldwide shipments of large-sized LCD panels amounted to 148.3 million units in the third quarter, up 14.3 percent from the second quarter of 2009, and up 28.9 percent from the third quarter of 2008. iSuppli expects to revise this estimate as more companies report third-quarter results.

    LG Display was the world’s largest seller of large-sized LCD panels in the second quarter of 2009, accounting for 25.3 percent of shipments. This put LG just slightly ahead of chief rival, Samsung, which had a 24.6 percent share. Preliminary indications show LG and Samsung were engaged in a tight battle for the market’s No.-1 position during the period.

    iSuppli predicts that rising fab utilization rates and decreased panel demand following the Christmas purchasing season will drive the large-sized LCD panel market to oversupply in the fourth quarter of 2009, conforming with normal seasonal patterns. However, the reductions in prices and shipments are expected to be only moderate compared to those of a year earlier, in the fourth quarter of 2008.

    Many panel suppliers, having just returned to profitability, are maintaining tight control of their inventories and have little motivation to cut pricing drastically at this time, according to the research.

  • LCD-TV Market Growing Fast in Russia

    Defying hard economic times, the Russian LCD-TV market is set for strong growth this year, with shipments rising by 13.6 percent in 2009, according to iSuppli.

    Shipments of LCD-TVs in Russia will rise to about 5 million units in 2009, up from 4.4 million in 2008. By 2013, shipments will nearly double from the 2009 level, increasing to 9.6 million units.

    Revenue will increase to $5.7 billion by 2013, up from $3.1 billion in 2008.

    The research shows LCD-TVs are the only segment of the Russian TV market that is expanding, with shipments of Plasma Display Panel-Televisions (PDP-TVs) and Cathode Ray Tube-Televisions (CRT-TVs) decreasing in 2009 and beyond.

    “One of the main reasons for the switch to LCD-TVs in Russia is that they have become a status symbol. Consumers in Russia are very image conscious and prefer to own televisions that they can show off to neighbors and family members,” said Riddhi Patel, principal analyst for television systems for iSuppli.

    While the 32-inch size dominates shipments as an ideal upgrade or first television, the larger-sized TVs are becoming trendier.

    Among brands in Russia, South Korean OEMs are in a winning position because of their strong brand recognition. Furthermore, the South Korean OEMs also have domestic production capabilities and vertical integration—factors that allow them to have better control over their costs and prices.

    According to Patel, as far domestic Russian brands go, they are suffering from a lack of financial strength as well as the absence of branding. However, with a strong marketing strategy and the capability to be price competitive, Russian brands could challenge global OEMs in the domestic market.

  • Apple Ranks Highest Among Both Consumer and Business Smartphone Owners

    Overall satisfaction among smartphone owners has increased considerably over time as manufacturers continue to improve styling, feature sets, usability and software, according to the J.D. Power and Associates studies.

    Satisfaction among consumer smartphone owners has increased by 14 index points (on a 1,000-point scale) from just six months ago, while satisfaction among business owners has increased by 43 index points from 2008 as these devices have become more stylish, customizable and user-friendly, the report says.

    Among traditional mobile phone owners, overall satisfaction has declined by six index points from April 2009, likely as a result of heightened awareness among traditional mobile phone owners of advanced features available on smartphones.

    J.D. Power and Associates studies measure customer satisfaction with traditional wireless handsets and smartphones across several key factors. In order of importance, key factors of overall satisfaction with traditional wireless handsets are operation (30%); physical design (30%); features (20%); and battery function (20%).

    For consumer smartphones, key factors are ease of operation (30%); operating system (22%); features (21%); physical design (18%); and battery function (9%). For business smartphones, key factors include ease of operation (29%); operating system (23%); physical design (21%); features (16%); and battery function (11%).

    Apple ranks highest among manufacturers of smartphones used primarily for personal reasons, with a score of 811, and performs particularly well in ease of operation, operating system, features and physical design. LG (776) and RIM BlackBerry (759) follow Apple in the rankings.

    Among customers who use their smartphones primarily for business purposes, Apple ranks highest with a score of 803, followed by RIM BlackBerry (724).

    LG ranks highest in overall wireless customer satisfaction with traditional handsets with a score of 723, performing well across all factors, particularly battery function, features and operation.

    The proportion of consumers who purchase more affordable smartphones (those costing less than $100) has significantly increased among most of the manufacturers included in the rankings, compared with the previous wave of the study six months ago. This indicates that wireless carriers are discounting their devices to attract new customers who are willing to pay for more costly service plans.

    "Attractive rebates or discounts offered to current smartphone owners, as well as incentives given to traditional handset owners to upgrade to smartphones, are effective ways for wireless carriers to generate revenue and increase market share," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates.

    "It is important, however, that manufacturers meet the expectations of those taking advantage of such offers by ensuring the features are intuitive and ultimately rewarding to them in the long run. Providing an easy-to-use, yet powerful operating system with the ability to customize applications to suit owners’ individual needs is essential to providing a high-quality and rewarding wireless experience."

    The studies also find the following key wireless handset usage patterns:
    • Among consumer smartphone owners, 22 percent want Wi-Fi capability in their next handset, while 21 percent want touch-screen capabilities and 17 percent want GPS capability.
    • More than 40 percent of consumer smartphone owners report entirely replacing landline calling with mobile phone calling, while only 27 percent of traditional handset owners have done the same.
    • Among business smartphone owners, more than one-half report downloading third-party games for entertainment, while 46 percent report downloading travel software such as maps and weather applications-indicating business users are also integrating their devices into their personal lives. In addition, nearly one-half of owners (46%) report downloading business utility applications to increase productivity.