The first half of 2011 is shaping up to be a profitable battleground among smartphone makers, with new devices that capitalize on the reach of 3G networks and the burgeoning 4G market. Apple (NASDAQ:AAPL) is leading the pack in terms of revenue, but others are putting up stiff competition. Here are four 3G and 4G smartphones defining the market in the first half of 2011:
HTC ChaCha/Salsa
HTC debuted five new smartphones on Tuesday, and two of them have the potential to win significant market share, especially with the college-age and younger crowd. The Google (NASDAQ:GOOG) Android-powered 3G HTC ChaCha and HTC Salsa (a smaller version of the ChaCha that doesn’t include a QWERTY keyboard) are supported by all major networks in the U.S., an advantage that already ups HTC’s chances. But the phone’s real hook is its integration with social network Facebook. With a dedicated Facebook button, users automatically post web links, pictures, and other media directly to their profiles with minimal fuss. This emphasis will certainly give Research In Motion (NASDAQ:RIMM) a run for its money provided HTC can get them the necessary exposure.
Motorola Atrix
Less than a month away from its debut on AT&T’s (NYSE:T) network in the U.S., Motorola’s (NYSE:MMI) Atrix 4G most represents the future of the market. Despite its high price and the still limited (but growing) reach of AT&T’s 4G network, its unique features could earn the Atrix a significant early following with business clients. The phone is a powerful and fast portable computer, its chief selling points being a speedy 4G phone and its attendant dock that includes multiple accessories, including a laptop-style shell, independent screens and keyboards manufactured by Motorola, and even a dock to sync the phone with a desktop computer. The Atrix represents a likely shape for mobile computing in the years to come and should drive its competitors to create imitators later this year.
Sony Ericsson’s Xperia Play
Sony Ericsson’s PlayStation-branded Android phone is taking a different route than HTC’s ChaCha and Salsa phones, but is aiming at the same audience. Rather than an explicit emphasis on social networking tools, the Xperia Play’s emphasis is on video games, both traditional games and casual/social games like Zynga’s Farmville and Rovio’s Angry Birds that have become phenomena on mobile phones. Instead of a slide-out QWERTY keyboard, the Xperia Play sports a traditional set of game controls (two four-button arrays and analog stick pads) which will allow for more complex games on the handhelds, such as Electronic Arts’ (NASDAQ:ERTS) popular FIFA and Madden franchises. Nine out of 10 of the all time best-selling paid apps on Apple’s App Store are games, so Sony Ericsson could have a hit with its devoted gaming phone.
Apple iPhone Nano and iPhone 5
Despite estimations that Apple could sell as many as 25 million of the new Verizon iPhone 4s before the end of the year, it’s better to think of that handheld as more of a Trojan horse for Apple’s long-term expansion plans in the U.S. The next phase includes both a new low-end model and a high-tech 4G device. The Wall Street Journal reported on Sunday that Apple is preparing a smaller, cheaper iPhone with revamped MobileMe features with which that the company will look to capture younger consumers, much as it did with the iPod Nano media player in the middle of last decade. The iPhone “Nano” will also likely be the last major 3G device from Apple, as this summer will also see the expected release of a 4G iPhone 5. Rumors have suggested that the 4G iPhone will support the LTE networks of both AT&T and Verizon, will have a 4-inch screen, and possibly a model with a slide-out keyboard, a first for the line. It is also believed the phone will include near-field communication technology to be used in transforming the phone into a mobile payment device.
At the time of publication, Anthony John Agnello did not own a position in any of the stocks named here.
