Close to half of consumers likely to upgrade to smartphone

Forty-one percent of consumers say they are likely to select an advanced OS device as their next mobile handset purchase according to a new study published by market research firm Yankee Group. Yankee forecasts that smartphones will grow to represent 38 percent of all handsets by 2013, the largest growth opportunity within mobile devices--the firm notes that most U.S. consumers have now owned four mobile devices, nurturing their appetite for enhanced features and more sophisticated designs as they ponder purchasing a fifth device.

Yankee Group contends that while operators have traditionally enjoyed the upper hand when working with manufacturers to bring new devices to market, the balance of power is shifting--with more competitive entrants, tighter budgets and increased consumer expectations, OEMs and operators need to work together, on equal ground, to flourish. "The release of the Palm Pre spotlights the changes in the OEM-operator dynamic," said Yankee Group senior analyst Chris Collins in a prepared statement. "Sprint and Palm, Inc. are two companies desperate for a blockbuster hit. And as such, they are either the perfect--or worst possible--partners for one another. The fate of both companies relies on the success of their alliance around the Pre."

For more on the Yankee Group report:
- read this release

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