Mobile Internet and GPS Change the Future of Smartphones in China

SUMMARY

The year 2007 was a milestone for the smartphone, with a series of events impacting the future of the device. These events include the introduction of the Apple iPhone, Nokia's announcement of its Ovi Internet service portal, and Google's announcement of its Google Android Linux OS platform.

In-Stat believes that there are three key factors that will have the greatest impact on the Smartphone market.

• Mobile Internet. Riding a wave that is bringing mobile Internet to handsets, the smartphone is evolving to become a mobile Internet device, with cellular voice communication just one function of the converged appliance.
• Revolutionary UI and UE. Touchscreen UI and 3D sensor technologies are being integrated into smartphone operating systems to enable a more creative user experience.
• Built-in GPS function. The GPS function enables the smartphone to be a mobile navigation device and provide location-based service to mobile users.

Referencing our Chinese consumer survey on smartphones, we clarify the difference between the Chinese and the US smartphone markets and outline the primary purposes for which Chinese consumers purchase smartphones.

Next, we provide an extended analysis of the trends mentioned above, and answer the following questions:

• How will the trend toward mobile Internet impact the smartphone market?
• What are the trends in mobile OS for next-generation smartphones?
• What impact will the GPS function have on the smartphone market?

TABLE OF CONTENTS

• Executive Summary
• Introduction
• Motives for Purchasing Smartphones
  • Entertainment
  • Internet Applications
  • Financial Management
  • Mobile Business
• Mobile Internet Trends
  • Why Nokia?
  • Impact on Smartphone Market
• Smartphone OS Trends
• Smartphones and GPS
  • Mobile Navigation is Coming
  • Latest Moves
  • Impact on Smartphone Market
• Chinese Smartphone Users
  • Operating System Awareness
  • Applications Used
  • Satisfaction Rating
  • Smartphone User Loyalty
  • Key Criteria for Next Smartphone Purchase
  • Willingness to Pay
• Market Forecast
  • Prospects for BlackBerry and iPhone in China
  • Drivers and Constraints
  • Shipment Forecasts
• Methodology
  • Survey Methodology
• Glossary
• Related In-Stat Reports

List of Tables

• Table 1. “Stock Smartphone” Model List
• Table 2. GPS-Enabled Handset List
• Table 3. China Smartphone Market Shipment Forecast, 2005- 2012 (Units in Millions)

List of Figures

• Figure 1. Smartphone Market Shipment Forecast, 2005- 2012 (Units in Thousands)
• Figure 2. Brand of Smartphone Used
• Figure 3. OS and Brand of Smartphone
• Figure 4. Applications Used
• Figure 5. Smartphone User Satisfaction
• Figure 6. Will You Purchase a Smartphone Again?
• Figure 7. Key Criteria for Next Smartphone Purchase
• Figure 8. How Much Are You Willing to Pay for Your Next Smartphone (US$)?
• Figure 9. China Smartphone Market Shipment: 2007, Breakdown by OS (Units in Thousands)