Smartphone makers and analysts have downplayed fears that Apple's iPhone 3G could pose a serious challenge for older smartphone manufacturers.

Analysts from Primasia Securities said in a report on major Taiwanese smartphone maker High Tech Computer (HTC) that concern about the iPhone 3G is " overblown".

HTC's share price plunged after the new iPhone was introduced. The new handset is causing particular concern among smartphone industry investors, because at $199 it has much lower upfront costs that the original iPhone.

Samsung is confident that its newly introduced Omnia SGH-i900 will be able to compete with the iPhone, a representative of the South Korean electronics firm told local media yesterday.

In fact, Samsung believes that the iPhone could help stimulate sales of smartphones with similar features. Primasia agreed that the iPhone could create an "entry point" for competitors such as HTC.

"The smartphone market is not crowded. There are only three major players, Apple, RIM and HTC, in the non-Symbian based smartphone camp," said Primasia analysts.

"And with an estimated 40 per cent plus growth rate for this sector in 2008, we believe the market is too pessimistic on the iPhone 3G's impact on HTC's growth."

However, despite the upbeat tone of the message, Primasia warned investors that market sentiment was pushing down HTC's share price following the launch of the Apple and Samsung handsets.

Both products are being seen as competitors for HTC's Diamond smartphone.

Source:vnunet.com