STRATEGY ANALYTICS: Touch Screen Phones Ready for Take Off; Touch Screen Phones Could Reach 40 Percent of Handsets by 2012

Business Wire, June 29, 2006

BOSTON -- In the latest report from its Handset Component Technologies service, Strategy Analytics predicts that the touch screen user interface in mobile phones will start to see significant growth by the end of 2007, assuming that the right conditions are present. By 2012, 40 percent of all phones may incorporate touch screen technology.

This report, "Touch Screen Technology in Mobile Phones: Ready and Waiting for a Blockbuster," provides an in-depth look into the technology behind mobile phone touch screens, along with profiles of the key industry players and a detailed market forecast. It concludes that the mobile phone market is almost ripe for an explosion in touch sensitive user interfaces and, when it comes, it will be capacitive technology that dominates.

According to Stuart Robinson, Director of the Handset Component Technologies service, "The touch screen market in cellphones is nearly ready to take off, but before it can do so certain conditions must be met. First, the cost of touch screen technology must shrink from $5-10 dollars to under $3. Second, revenue-generating applications must be developed to differentiate touch screen devices from menu or icon driven phones. Finally the market requires a catalyst, such as the presence of an iconic touch screen phone in a Hollywood blockbuster, to generate demand."

Touch screen interfaces for mobile phones will remain at under 2 percent of total devices until such a catalytic event occurs, predicted to be at the end of 2007, at which point rapid growth will ignite interest in touch screen phones, growing the market to around 40 percent by 2012.

Stephen Entwistle, Vice President of the Strategy Analytics Strategic Technologies Practice, adds, "We expect most demand to come from finger-sensitive technology built into high-end feature phones. This will be a significant shift from today's wireless PDA segment, where most stylus-driven touch screen devices can be found."

For chart, "Penetration of Touch Screen Technology into Cellphones," see www.strategyanalytics.com/press/PR00307.htm

About Strategy Analytics

Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. See www.strategyanalytics.com