The smart phones has been a driving force of cell phone industry over the past few years however, with many new vendors entering the market over the next year, the competition is expected to greatly increase even further in 2010.  Neil Mawston from the research firm Strategy Analytics (SA) confirms the expected competition in the smartphone industry stating "The smartphone market will become ultra-competitive in 2010.  The smartphone wars will be good news for consumers, but the fierce competition will inevitably place downward pressure on vendors' pricing and margins." 

Overall this market seems to be growing rapidly, with the cell phone market growing 10% from the previous year and this year, with the addition of new vendors such as Samsung Electronics, LG Electronics, Huawei and Dell have stepped into the ring.  CCS INsight analyst Geoff Blaber said, "An influx of new players, an oversupply of devices and aggressive pricing will strain profit margins, “With Nokia currently leading market volumes, they are expected to fall behind in 2010 with the highly integrated device and service offerings from Apple and RIM are believed to come out as the winners.

http://www.reuters.com/article/idUSLDE60U0K220100201