According to In-Stat Smartphone Market Growing Rapidly Despite Major Challenges.

SCOTTSDALE, Ariz. -- Year-to-year growth in the Smartphone market in 2005 will exceed 70%, and will continue to grow robustly for the next several years, reports In-Stat (http://www.in-stat.com). There is a risk, however, that these devices will be seen by consumers as just very expensive feature phones, the high-tech market research firm says. A major problem is that many users do not download applications that make the devices more useful after they leave the store.

"The market's growth will involve major shifts in share among the OS platforms," said Bill Hughes, In-Stat analyst. "The winners will be Microsoft and Linux. Their growth will be at the expense of Research In Motion (RIM) and PalmSource, although these organizations will continue to see their numbers grow."

A recent report by In-Stat found the following:

--The median number of applications that Smartphone users have downloaded is only one, and the ownership of PDAs, the devices that Smartphones are meant to displace, is twice that for Smartphone users as nonusers.

--Consumers, as well as the industry, still lack a clear definition of "Smartphone."

--Many wireless organizations are wary of Microsoft's intentions with Windows Mobile. Microsoft is working to overcome the reluctance by the wireless industry by integrating the delivery of content to Windows Mobile-based Smartphones with its server software.

The report, "The Smartphone OS Wars" (#IN0502112WH), covers the global market for Smartphones. It includes worldwide unit shipment forecasts by OS through 2009. It also contains results of a user survey of Smartphone users in North America with data on user preferences for features and OS. The report explores market barriers and drivers along with trends that will influence future development of the market.

For more information on this report, please visit: http://www.instat.com/catalog/Wcatalogue.asp?id=66 or contact Tina Sheltra at 480-609-4531 or [e-mail]. The report price is $2,995.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, market analysis and forecasts of advanced communications services, infrastructure, end-user devices and semiconductors. Our insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.