Smartphones dominated 20% of the prepay market in December last year from 2% a year earlier, according to new figures from analyst firm GfK.
The figures showed that the smartphone prepay market grew from a 2% share in the prepay market in 2009 to 10% in 2010, reaching 20% in December 2010.
Meanwhile, smartphones accounted for 50% of value share in the total prepay market in December 2010.
However, prepay handset sales declined overall by 7.4% compared with December 2009.
Phones with an ‘advanced’ operating system such as Android continued to grow in the contract market during 2010 and during the last quarter, growth accelerated in the prepay market, GfK said.
Sales of Android phones specifically increased in both the contract and prepay markets, the analyst said, adding that Android represented 28.9% of smartphone prepay market volumes in during December.
GfK analyst Megan Baldock said: ‘By the end of 2010 the rise in the share of smartphones in the contract market had stabilised. The prepay market is still gathering momentum and this trend looks set to continue in 2011.’