Summer of a smart phone war?

first iPhone hit the streets two years ago, the gadget revolutionized the smart phone industry — it was the first to offer an advanced touch-screen, a robust Web experience and the ability to watch movies and to download thousands of programs.
The groundbreaking gizmo also upped the ante for competitors who watched the iPhone not only transform the market but also become the dominant player.
“Apple and AT&T stood on the top of the hill, put their flags in the ground and called themselves the kings,” telecom analyst Jeff Kagan said. “They dared all the other carriers and handset makers to take them on. And now they're taking them on.”
The fastest and most powerful iPhone to date — the 3G S — will launch nationwide today. But the same market that reinvented is maturing and transforming into an arena of increasing competition.
This summer, analysts are expecting the industry's first “smart phone war” as major handset makers ramp up their efforts to compete against the iPhone. Before anxious customers clamp their paws around the iPhone 3G S, already will have had to contend with a new BlackBerry Curve that hit the market in May and Palm's highly touted launch of the Pre.
That's not to mention the upcoming launch of the BlackBerry Tour and a slew of other smart phones being introduced by companies such as Nokia, Motorola and Samsung.
“These phones are hot, and people want to get their hands on them,” Kagan said. “And this year is going to be interesting to watch how the marketplace segments itself.”
Analysts say the boom has been sparked by consumer demand for the sexiest gadgets available and increased competition that has drastically lowered prices. Worldwide, smart phones have grown from about 10 percent of the total cell phone market to about 50 percent in the past couple of years. The smart phone sector could account for up to 75 percent of the cell phone market by the end of the year, and the industry could see the total number of smart phone users swell “well beyond 1 billion by the next four or five years,” said analyst J. Gerry Purdy of Frost & Sullivan.
For consumers, growing competition equates to more product choices and cheaper prices — two elements that analysts say open the door for a “universe” of new customers.
As for the 3G S, it isn't an altogether new model. It's been described as a “supercharged” iPhone that comes equipped with a faster processor, more memory, longer battery life, a video recorder and an updated camera. But it still lacks a physical keyboard and the ability to run multiple applications and, for now, is available only on AT&T's network.
“I think it will do well,” Purdy said, adding that he expects stores to sell out. “It will keep sales momentum going and growing, but they need to do some other things if they want to go from 20 million units to 200 million units.”
Still, the question lingers: Which smart phone is the best?
Put the question to Jennifer Ramirez-Jasiczek, a 38-year-old owner of a San Antonio-based wedding and event planning company, and she'll say her iPhone not only helps coordinate different aspects of her business but is crucial to organizing her bustling life as a mother of five children.
“I won't ever switch from the iPhone unless something miraculous is developed,” said Ramirez-Jasiczek, who ditched her BlackBerry for an iPhone about six months ago.
But if you ask Nan Palmero, who works for a local marketing and consulting firm, the BlackBerry's keyboard, removable battery and superior security features make it the perfect choice for business and pleasure.
“For me, my BlackBerry is my everything phone,” he said.