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Smartphone Wars?

By: HHA

From: eye-onmobile.com

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Sales

The war for the privileged spots in sales and popularity of Smartphones is on. Two of the most anticipated Smartphone devices are now available to eager costumers, the Palm Pre and iPhone 3GS. But with these new models out, what is a mobile phone fan to do?

With the Smartphone market increasing every period in the last couple of years (it grew 68 percent only last year), we are talking about internet access anytime and anywhere. That's why developers are so concerned with merging photos, music, email, internet and all kinds of media with a device in the palm of your hand, inside the most portable and attractive design.

Just this month with the release of these hot new Smartphone models, analysts begin to guess how many units the companies are going to sell both in pre-orders and in their first weeks in stores. Apple is expected to sell about 500,000 units of its iPhone 3GS in only the first week, compared to the 1 million iPhone 3G units sold a year ago, but we have to take into consideration that the new model doesn't present a huge change from the previous model and the iPhone 3G was release released in 21 countries instead of just 8 like this year’s model (Canada, France, Germany, Italy, Spain, Switzerland, UK). None the less, with the slow release of the Smartphone in more countries the sales will grow to greater numbers, or at least break even with its predecessor. The combined sales of the 3G and the 3GS should reach 5 million of units by the end of this quarter and will increase in the next fiscal quarter of the year. The 3GS will out do the 3G if expectations are right.

On the other hand (no pun intended) we have Palm with its Palm Pre. The sales of the Palm Pre are as overwhelming as with the iPhone 3GS, but with an estimated 150,000 to 300,000 units already sold, Sprint just reported it already broke sales record and hopes to sell at least 1 million of units in the next quarter period of production. Palm has developed a new interface (the WebOS operating system) that enables multitasking with applications over the internet in an easy and friendly way for the user. This has resulted in excellent and positive reviews. The mobile phone has boosted sales and the share price of the company, who in the recent year has reported loses in its finances department. Currently Sprint is the exclusive retailer of the Pre. But with more Smartphones based in the WebOS platform in the works for next year, Palm should rise and evolve; it was the pioneer in Smartphone tech in the 90's but fell behind due to other companies being much faster putting new models out with attractive new applications and media.

Even with the sales of the new Palm being as optimistic as they appear, they seem small in comparison to the sales expectations of Apple and its iPhone 3GS. But maybe the market has changed and they can coexist. The Smartphone marketplace has become very large, with solid competitors like Sony Ericsson’s Satio, HTC’s Magic, Nokia’s N97, Samsung’s Pixon 12, and Blackberry’s Storm 9530 in the picture now. The industry has shifted from regular mobile phones to Smartphones and this change also creates more demand, so it could become hefty enough for several brands to co-exist and provide a great variety of products.

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