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Trend: More Mobile Users Get Smart(phones)...

Mon May 10, 2010 - 12:02 PM EDT - By Annie Latham

According to a RCR Wireless story at the end of 2008, the U.S. market had a smartphone penetration rate of 15%. Currently it is nearly 25% and The Nielsen Co. is predicting that by the end of 2011, there will be a 49% adoption rate. That's right, half the mobiles out there will be smartphones.

With the price drops we've been seeing, that's not too far-fetched.

The story discusses the uses of the smartphone: communication first, seeking information second, followed by entertainment.

That seems in line too.

Mobile video usage is bringing up the rear: "It's still a poor experience for most users."

The story included quotes from Jennifer Byrne, director of business development at Verizon:

>> She believes the top mobile video category will be self expression and user-generated content, particularly once two-way video gets its legs.

>> Social networking and microblogging services like Facebook, Twitter and Foursquare consistently maintain the lead positions on every app store.

>> She added. “My hope is that companies like Facebook will innovate on mobile like they are online” so that when Verizon Wireless sells a smartphone, there's a clear reason why a customer would buy such a device and pay for a data plan.

Of course, working out the monetization model for mobile video is an ongoing discussion. This is definitely a "To be continued" story.


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