Notwithstanding the economic downturn, the smartphone market is on an upswing, with consumers increasingly seeking devices that are well designed with innovative features and applications such as touch screen technology, wireless fidelity (Wi-Fi) and location-based service (LBS), according to notes Research and Markets (http://www.researchandmarkets.com/). And that, of course, is good news for Apple.

These devices continue to be status symbols in the consumer and enterprise markets, says Research and Markets. In the next couple of years, software is expected to play a major role in the mobile handset market, along with more standardized hardware design, adds the research group. And, again, Apple has a leg up on the competition in this arena.

Mobile operators are likely to partner with significant participants from the Internet community, the media and the entertainment industry to further boost the appeal of advanced handsets. The smartphone market will remain highly fragmented in the next five years, says Research and Markets. Although traditional participants across the smartphone value chain will continue to dominate the market, more collaboration between consumer electronic device manufacturers is expected and new technology vendors will be the trendsetters in the mobile market.

Consumer demand for the ultimate converged devices to support multiple functionalities such as touch screen, camera/video support, dual simcard provisions, WiFi and integrated global positioning system (GPS) is anticipated to spur demand for smartphones. What's more, social media and Internet communities, as well as application developers, are likely to gain control and prominence in the wireless and mobile market, resulting in more collaboration across the value chain. Innovation, combined with the strategy of differentiating products, will be one of the most prominent factors in achieving significant growth.

However, falling average sale prices will continue to affect the revenue growth rate of this market. Additionally, diversified operating system (OS) platforms; intense competition among smartphone manufacturers and poor battery life of smartphones to support multiple access technologies will affect the smartphone market in the next 4-5 years. There is a large battlefield in terms of mobile operating software (MOS) providers, with several terminal vendors opting for a different platform for each type of client device.

-- Dennis Sellers