IDC, a market research firm, is predicting that the billionth mobile phone will be sold by the end of this year. While most of the growth comes from first-time buyers in new markets like China, cell phones capable of music playback are driving plenty of sales in more mature markets as users upgrade to devices with the latest functionality.
While DAP capabilities are driving sales this year, the question remains whether this is just a fad. DAP means bigger phones and less battery time so it is possible that consumers will reject this technology convergence if their calling activities are affected (eg, no juice to make that call after listening to a few hours of music). And if and when everyone’s phone comes with a DAP, what new technology will drive the next round of consumer spending?