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Frost & Sullivan Predicts Smartphones to Account for 54 Percent of Asia-Pacific Device Sales by 2015

Singapore, August 23, 2010 - Growth in the Asia-Pacific smartphone market is expected to skyrocket in the coming years, and by 2015, Frost & Sullivan forecasts that 54 percent of all devices sold in the region will be smartphones, up from only five percent in 2009.

Smartphone sales in Asia-Pacific are rapidly increasing in all markets, as developed markets like Japan and South Korea are switching from feature phones to smartphones, while operators in emerging markets are pushing smartphones to entice users to upgrade from 2G to 3G service.

Mobile social networking has also proven to be a big driver of smartphone adoption in all Asian countries.

"Smartphones are critical to every operator's mobile broadband business case, as a smartphone user's ARPU (average revenue per user) typically increased by 25 to 100 percent after adoption depending on the market," says Frost & Sullivan Industry Manager Marc Einstein. "The Asia-Pacific market is particularly interesting for smartphones as there has been significant uptake in emerging markets like China, India and Indonesia, even among prepaid users."

New analysis from Frost & Sullivan (http://www.wireless.frost.com), 2010 Asia-Pacific Mobile Device & Smartphone Outlook, finds that the incremental data usage from smartphones will generate more than U.S. $38 billion for operators in the Asia-Pacific region (18 Asia-Pac countries, including Japan), up from just more than U.S. $1.3 billion in 2009.

If you are interested in more information about this study, send an e-mail to Sarah Lourdes at sarah.lourdes@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website and country.

Despite the massive growth in smartphone sales, there are still many factors impeding sale of the device in many markets. According to Einstein, "Eighty percent of Asian mobile users use prepaid cards, and in fact in many markets are as high as 97 percent, making smartphone subsidies impossible for most users. Furthermore, there is a lack of public Wi-Fi, particularly in emerging markets, which has been a smartphone savior in the USA and other developed markets."

Smartphone sales are also particularly important for vendors as the total market for device sales is stagnant in most markets.

"Only the most developing markets are seeing double-digit increases in device sales, and with flat or negative growth in many markets, smartphone sales are filling in this gap," Einstein adds.

He estimates 477 million units of smartphones will be sold in Asia-Pacific in 2015.

The 2010 Asia-Pacific Mobile Device & Smartphone Outlook study is part of the Mobile & Wireless Growth Partnership Service program, which also includes research in the following markets: WiMAX, mobile content, mobile advertising, mobile broadband, mobile payment, mobile CAPEX (capital expenditure), mobile services and operator profitability analysis. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 49 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com

Contact:

Sarah Lourdes
Corporate Communications - Asia Pacific
P: +603.6207.1030
E: sarah.lourdes@frost.com

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