If you mistakenly think that feature phones will somehow surge back into dominance, I feel sorry for you. Smartphones are the way of the future. People these days have a very strong desire to check their email or something on the web while on the go and this requires something at least as powerful and functional as a smartphone. Some consumers will naturally opt for a tablet to be different but they’re not portable enough to slip inside a normal pocket.
This is why UBS analyst Maynard Um believes that while smart phones currently account for just 30% of sales in the cellphone market, they account for over 75% of revenue in the industry. Which isn’t all that surprising on its own considering the most high-end feature phone will still cost less than a below average Android smartphone.
What is surprising is that Um goes onto say that he believes Samsung and Apple will take to the bank 55% of the mobile industry’s revenue and over 90% of profits before tax this year.
Kitguru says: With the highly hyped Samsung Galaxy S III and the iPhone 5 set to launch by June this year are the days of Android vs iOS gone, destined to be replaced by Samsung vs Apple?