EL SEGUNDO, CA -- Although the outlook for the overall mobile handset market continues to dim, smartphones remain a bright spot with global unit growth as high as 11.1% in 2009, iSuppli Corp. predicts.

iSuppli forecasts global smartphone shipments will reach 192.3 million units in 2009, up 11.1% from 2008. However, the research firm hedged its outlook by adding eroding consumer confidence could cut that forecast to 6% growth.

Under the best case scenario, wireless network operators "must cut fees for data services and offer aggressive subsidies to reduce consumer smartphone prices,” said Tina Teng, senior analyst for wireless communications for iSuppli. “Furthermore, wireless operators and handset brands have to sell consumers on the value of smart phones to encourage customers to upgrade."

If consumer confidence continues to erode, the lower forecast is likely to prevail, Teng said.

Smartphones will make up between 16.6% and 17.4% of total mobile handset unit shipments in 2009. Shipment CAGR from 2008 to 2013 will range from 18.3% to 21%.

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