The Smartphone OS Battle Intensifies with Key Announcements from AT&T, Verizon, Microsoft and Palm, According to In-Stat

SCOTTSDALE, Ariz.--(Business Wire)--
Market research firm, In-Stat (www.instat.com), believes we are entering a very
critical time for smartphone OSs, as exemplified by four major smartphone
announcements on October 6 from AT&T, Verizon Wireless, Palm, and Microsoft.

"With Android on the upswing, Palm`s Web OS starting to expand, and Apple`s
iPhone not showing signs of slowing down, the battleground, and subsequent
weeding-out phase of the smartphone OS war has started," according to In-Stat
analyst, Allen Nogee.

AT&T announced that it would now allow VoIP applications that run over its
cellular network to be installed on iPhones. In-Stat believes AT&T has been
watching the FCC become more serious about network neutrality in the mobile
space; it may be only a matter of time before AT&T would be forced to allow
these applications anyway. Currently, many high-voice usage customers are
business customers. These subscribers likely won`t switch to VoIP in the
near-term as their business pays for their service. Still, the AT&T announcement
will have long-term implications for the current US cell phone billing model. If
AT&T and other operators can`t charge high prices for voice, they will likely
make it up by raising prices for data.

Verizon announced that it was adopting phones with Android and allow the Google
Voice application on its phones. In-Stat assesses that Verizon has given up on
prospect of selling the iPhone anytime soon, and it`s likely that AT&T and Apple
will extend their exclusive iPhone agreement at least another year. Verizon,
looking toward LTE, needs to get its ducks in a row not next year but now.

Microsoft announced that Windows Mobile 6.5 was finally ready. Microsoft has
been slowly bleeding market share over the years. Windows Mobile 6.5 is
Microsoft`s best hope of slowing the defectors. Is it too little too late? While
users may wait for a Microsoft for a PC OS update, In-Stat believes this is not
the case in mobile. Even for a giant like Microsoft, it will be difficult to
rebound as the smartphone OS market heats up.

Palm announced that it was opening up the Web OS doors to its developer program,
with developers getting a 70% cut of profits similar to the Apple model. In
contrast to Apple or Google, Palm promises minimal oversight or rejection of
legitimate applications. Palm will provide the developer with a link in return
for submissions, so that users can install the application on their phone.

Let the battle begin and the best smartphone OSs emerge. The fight will not be
pretty.

About In-Stat

In-Stat`s market intelligence combines technical, market and end-user research
and database models to analyze the Mobile Internet and Digital Entertainment
ecosystems. Our insights are derived from a deep understanding of technology
impacts, nearly 30 years of history in research and consulting, and direct
relationships with leading players in each of our core markets. In-Stat provides
its research through reports, annual subscriptions, consulting and advisory
services to inform critical decisions.

In-Stat
Allen Nogee, Principal Analyst, 480-609-4538
anogee@reedbusiness.com
or
Elaine Potter, Marketing Coordinator, 480-483-4441
epotter@reedbusiness.com

Copyright Business Wire 2009