Strategy Analytics: Touch Screen Phones Ready for Take Off

Strategy Analytics is predicting 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."

A recent report from the firm concluded 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."

Stuart Robinson at Strategy Analytics said, "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."

Strategy Analytics forecasts that "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 at Strategy Analytics added, "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."