Smartphones could make up 80% of telcos' postpaid bases

Sales for handset should fall q-o-q as Singapore comes out of the festive period and as the iPhone 4-related craze enters its tail end, says CIMB.

However, CIMB continues to expect smartphone sales to rise. IDC notes that smartphones acounted for two-thirds of all phones sold in Singapore in 2010 from one-third in 2009.

Smartphones now make up 50-60% of the three telcos' postpaid bases and this could hit 80% by year-end.

Smartphone penetration is also beginning to reach the masses as pricing points fall and there is a greater choice and availability of devices. Smartphones now constitute 80-90% of net adds/re-contracting subscribers, highlighting the mass appeal of these phones.