Smartphones move out of their niche

Smartphones used to be niche products. They were bulky and cost about $500, says tech analyst Ross Rubin at researcher NPD.

But now design and price "are becoming consumer-friendly," says Nokia (NYSE: NOK) spokesman Keith Nowak. Nokia’s new, slim E62 smartphone sells for as little as $100 with a service contract. That type of product should help the market grow, Rubin says.

The industry certainly hopes so. Carriers like smartphones because they encourage users to buy data services, which usually range from about $10 to $50 extra a month.

Handset makers like smartphones because they don’t always cut into sales of other products. Business smartphone users are three times as likely to have a second cellphone than are regular users, says wireless analyst Bill Hughes at In-Stat.

That helps explain the flood of recent smartphone announcements. Palm (NSDQ: PALM), Samsung, Motorola (NYSE: MOT) and Nokia are among companies that recently launched products. Motorola this month announced plans to acquire Good Technology, a company that makes wireless e-mail software for many smartphones. Nokia this year acquired its own e-mail company, Intellisync.

Source: USA Today

I’m ashamed to admit it but I too used to be one of those
individuals who thought smartphones were useless. They were slow, had horrible
battery life, and looked like bricks. Besides, my phone did text messaging and
calling, why would I want more? As the years rolled on and the technology got
better and more importantly cheaper, I began lusting after one. I picked up my
Nokia E61 for around $400 shipped, and it’s become an extension of my body in a
sense that yes I love my laptop, but I can’t take my laptop with me everywhere,
nor can I depend on it to last me more than 6 hours. Consider me converted
permanently. It’s a shame that the Nokia E62 looses wifi since I couldn’t
imagine what a world without that glorious 2.4 GHz spectrum built in to my mobile would be like.