As categories of mobile devices converge, there are four primary types of productivity tools - the ultra-mobile PC (UMPC), the mobile Internet device (MID), smartphones, and smartphones with mobile companions, reports In-Stat, the clear winner in an In-Stat survey of U.S. consumers is the smartphone, either alone or with a mobile companion, the high-tech market research firm says. Nearly half of the respondents chose the benefits and capabilities associated with smartphones. Fewer than 10% indicated a preference for the capabilities of MIDs.

Third-generation (3G) handsets will continue strong growth over the next five years as second-generation technology wanes, reports In-Stat. Through 2012, fourth-generation network handsets are not expected to enter the market in sizable numbers. Helping to boost overall sales, subscribers owning and using several handsets will be more prevalent over the next several years. This development is already widespread in many areas, especially where employers provide a mobile device.

Fueled by market drivers, such as inexpensive flash-based players available around the world, growing broadband penetration, and the increasing availability of affordable, legitimate music and video online, the market for portable media equipment will see strong growth in Japan over the next several years, reports In-Stat. Music-enabled cell phones, however, may cut into this market, the high-tech market research firm says. “While video capable, dedicated PMP/MP3 players seem safe from multimedia cell phone competition, there is a significant opportunity for cellular operators to capture those consumers who are considering audio-only MP3 players,” says Alice Zhang, In-Stat analyst.

The 2006 image sensor market saw strong growth, due primarily to one application: camera phones, reports In-Stat. In 2006, image sensors for camera phones comprised over 3 quarters of all image sensors shipped, the market research firm says. Fueled by camera phones, CMOS sensors dominated CCDs in units shipped in 2006. “CMOS also made inroads into digital still cameras and camcorders in 2006, two markets that traditionally have been dominated by CCDs,” says Brian O’Rourke, In-Stat analyst. “CCDs continued to dominate the point-and-shoot sweet spot of the camera market. However, the growing DSLR market has been transitioning to CMOS sensors, led by Canon, which exclusively uses its own CMOS sensors.”