Demand for emerging applications are driving smartphone sales, market watchers predicted today.

According to a new IDC study, users in different regions have differing priorities when it comes to smartphone purchases. Interest in Wi-Fi access and location-based services are highest in the US and UK, while storage capacity, music quality, and photo quality are the highest in Germany, India, and China, an IDC recent survey of more than 4,000 mobile phone and smartphone subscribers from five countries found.

"The mobile device today is increasingly becoming a multi-talented productivity and entertainment tool, and next-generation networks, services, and device technologies will only amplify that perception," said Randy Giusto, group vice president for IDC's Mobility, Computing and Consumer Markets research.

Besides a focus on applications, the IDC study also observed that monthly average revenue per user (ARPU) rose everywhere except Germany as survey respondents switched from traditional mobile phones to smartphones. IDC concludes from study results that smartphone subscribers are also generally more satisfied with their devices than traditional mobile phone subscribers.

This was found to lead to heavier use and greater spending, thereby impacting ARPU.
IDC also believes that customer experiences and satisfaction levels related to operating systems (OS) are emerging as a competitive differentiator.