iPhone 5 Expected to Boost Smartphone Market: NPD
An NPD report expects Apple's new iPhone to give the mobile industry a boost, but Ovum warns that Apple is in danger of falling behind the competition.Worldwide smartphone shipments are expected to pass 1 billion in 2012, with the impending launch of Apple's latest version of its iPhone smartphone creating additional excitement in the market, according to a report from research firm NPD. Yet, despite the excitement surrounding the new iPhone, the volume of new smartphone shipments is lower than expected, according to NPD, which downgraded its forecast of new purchases in 2012 to 177 million units from 220 million to 230 million units. The report also concentrates on the display type Apple is presumed to have included on the latest version of the iPhone, which is widely expected to be larger, wider and offer in-cell touch technology, which uses a touch sensor integrated into the display panel. The space-saving design element, which can reduce the thickness of the display-sensor combination by as much as a half-millimeter, could be used to allow for a larger battery, the report predicted.
"Apple's iPhone 5 will be a key product for the smartphone market in the second half of 2012. Apple shipped more than 140 million phones in 2010 and 2011, so we can expect smartphone shipments to continue flourishing as users upgrade to the new iPhone," Hiroshi Hayase, vice president, small/medium displays for NPD DisplaySearch, said in a prepared statement. "The timing of mobile phone contracts can also impact the smartphone market. More service providers are likely to shorten mobile phone replacement cycles in an effort to boost sales."