New research shows that the smartphone is emerging as a clear winner among productivity tools as categories of mobile devices converge.

Almost 50 percent of respondents to an In-Stat survey chose the smartphone, either alone or with a mobile companion, when compared with the ultra-mobile PC and mobile Internet devices. Less than 10 percent showed a preference for mobile Internet devices' capabilities.

"We classify smartphones as cellular phones that can download and run third-party applications in the native environment," said Bill Hughes, analyst at In-Stat. "That distinguishes them from most feature phones that can run either JAVA or BREW applications.

"We also make the distinction between smartphones and phones that are mobile Internet devices [MID]," he said. "If it is a MID, it can access the Internet via a mobile Web browser, but cannot run third-party applications in native mode.

"The advantage of a smartphone as a MID is that they typically, although not all, have a QWERTY keyboard and can connect to the Internet through the cellular network. On a mobile device, using cellular is often more convenient that using Wi-Fi because it has more coverage and you can move."

In-Stat research found that while mobile companions for smartphones are popular, users have unrealistically low expectations for pricing.

Also, 25 percent of users like the ultra-mobile PC as long as it doesn't shortchange the capabilities of a full-function laptop computer.

Interestingly, consumers showing an interest in mobile Internet devices were unclear about how they would use these devices or where to buy them. This finding says something about the consumer's tastes.

"If the question is if MID-only devices have a future in the US, my analysis of my survey results is that it will be a challenge," Mr. Hughes said.

"The reality in the U.S. is that smartphones cost less than MIDs because they are subsidized and do more because they have better coverage than Wi-Fi alone," he said.

The findings were released in In-Stat's report titled, "Competing Mobile Device Visions for the U.S.: UMPCs, MIDs, and Smartphones."

The report also noted that the key objection for mobile data technology and smartphones is user skepticism over the benefits of mobile data. Users view smartphones as a luxury and also tend to overestimate the actual cost of smartphones.

That said, many employees expect to buy smartphones for themselves instead of their employers supplying the productivity tools.

The attitude to smartphones has several implications for carriers, manufacturers and marketing.

"The implication for wireless carriers is that they should do more to promote smartphones," Mr. Hughes said. "The net of these are that wireless carriers should give smartphones away to heavy users. This kind of loyalty promotion pays itself back very quickly.

"The implication for manufacturers is that they should offer line of smartphones," he said. "One caveat is that there is a strong correlation between profitability and the number of smartphone operating systems carried.

"Essentially, manufacturing a smartphone line with one smartphone operating system is profitable. Using two or more smartphone operating systems is unprofitable. We could talk more about this, but this is true for 2007.

"I believe that smartphones affect marketing in several ways. First, smartphone use is associated with higher income, more technically sophisticated users. In other words, these are a marketer's dream segment for a large number of other high-status products.

"Next, the availability of a QWERTY keyboard makes these users more likely candidates for e-commerce applications. While the younger generation is proficient with using a 12-key keypad, they do not have that much dollars."