ABI Research: WiFi-enabled handset shipments to double from 2008 through 2010

Shipments of WiFi-enabled mobile phones will double in volume by the end of 2010, compared to January 2008, and that growth curve is expected to continue through 2013, according to ABI Research.

This data clearly shows WiFi technology will continue to penetrate deeper into mobile handsets over the next five years due such factors as increased consumer awareness and demand, new operator business models, and increased value for mobile phone makers.

While Nokia (NYSE: NOK) leads the market in WiFi-enabled handsets due to the sheer volume of its portfolio, WiFi models only represent a small fraction of the range. In contrast, every Apple (NSDQ: AAPL) iPhone has WiFi and due to its ease of use, more iPhone users — as many as 75% — are using their Wi-Fi regularly. Contrasting again, HTC’s handset lineup is 80% WiFi-equipped, but only 10% of its users are employing the WiFi capability.

However, industry analyst Michael Morgan says there few challenges to WiFi’s continued growth. “One obstacle is the glacial pace of IEEE standardization in the areas that address voice over WiFi usage. Another is the growing carrier interest in femtocells. While they have their problems, femtocells do provide an alternative to improving in-building coverage without the need for WiFi capable handsets. Although Wi-Fi access points are already installed in many homes and business, the carriers may ultimately push to have femtocells installed at these key locations,” he added.

In WiFi’s favor are the facts that as flat rate data plans increase, carriers can leverage WiFi capable handsets to offload data intensive applications, improve in-building coverage, and offer new services to new markets.

As usual, more information about ABI Research’s study titled “Wi-Fi Capable Handsets” is available from their website.