Launch of iPhone 5 Expected to Accelerate Growth, Raise the Bar for Smartphone Design – NPD DisplaySearch

Smartphone shipments are forecast to reach 567 million in 2012, and nearly double by 2016 as new phones, like this week’s iPhone 5, continue to enter the market.

According to Hiroshi Hayase, Vice President, Small/Medium Displays for NPD DisplaySearch, “Apple’s iPhone 5 will be a key product for the smartphone market in 2H 12. Apple shipped more than 140 million phones in 2010 and 2011, so we can expect smartphone shipments to continue flourishing as users upgrade to the new iPhone.”

Source: NPD DisplaySearch Smartphones: Displays, Designs and Functionality

Despite the excitement surrounding the new iPhone, the volume of new smartphone shipments is lower than expected. NPD DisplaySearch downgraded its 2012 forecast of new purchases from 220-230 million to 177 million. The volume of replacement phones, however, is expected to increase as new smartphones enter the market.

“The timing of mobile phone contracts can also impact the smartphone market,” says Hayase. “More service providers are likely to shorten mobile phone replacement cycles in an effort to boost sales.”

iPhone 5 to Deploy Innovative Technology

In addition to creating excitement in the smartphone market, Apple s iPhone 5 implements new component and system technologies with a slightly larger display (4″ – up from 3.5″) with the same Retina display dot pitch of 326 ppi, and a wider screen format of 1136 x 640 pixels. One of its most anticipated new technologies is in-cell touch, using a touch sensor integrated into the display panel. This approach can improve the performance of the display, and most importantly, reduce the thickness of the display-sensor combination by as much as a half-millimeter. NPD DisplaySearch expects Apple has utilized the space saving for a larger battery for less frequent charging.

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