The Consumer Electronics Association (CEA), the trade association promoting growth in the U.S. consumer electronics industry, has announced findings from its latest study, "Wireless Phone Data and Entertainment Services," which points to an increased consumer demand for entertainment and data services on wireless phones which is driving the purchase of smartphones.

 

"While smartphones were once mostly for business use, they are becoming mainstream, as new wireless services like navigation and Internet access are included in more handsets," said Steve Koenig, CEA's Senior Manager of Industry Analysis. "These devices will slowly but surely supplant standard handsets."

 

Consumers looking for full functionality and advantage with their wireless phone purchase have their eyes set on smartphones.

 

The study uncovered that 40 percent of American adults said they plan to purchase a new wireless handset within the year, with navigation, E-mail and Internet access all key features in their purchase.

 

Shipments of smartphones, according to CEA's estimates, has increased three-fold in the last three years, with 2007 unit shipments accounting for 15 percent of the total handset volume. Also, CEA predicts that in 2008, smartphones will reach over $8 billion in factory-to-dealer sales.

And while 11 percent of adult cell phone owners said they have a smartphone, this number is expected to rise as the amount of wireless services available to consumers also increases. This increase will also be further strengthened by the auction of the 700 MhZ analog television spectrum, which will help bring new services as well as improve those currently being offered.