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ISuppli sees 80% of mobile phones using GPS by end-2011

An estimated 80% of cellphones shipped will use global positioning system technology by the end of 2011, up from 56% in the first quarter of 2009, research firm iSuppli Corp. said.

Social-networking services and applications that use GPS have become commonplace on smartphones as advertisers and consumers seek applications that take the user's current location into account.

Apple Inc.'s iPhone store already has more than 6,000 apps that incorporate the user's location, ISuppli said. Google Inc.'s acquisition of mobile ad provider AdMob and Apple's new iAd platform demonstrate companies' desire to draw advertising dollars from programs that track a consumer's location.

Companies' spending on mobile-device advertising is expected to grow to more than $1.5 billion by 2013 from $416 million last year, according to eMarketer, which tracks Internet marketing trends.

The trend toward location-tracking technology "is illustrated in Google's decision to make turn-by-turn navigation, [location-based services] and mobile ads the central features in its bid to take on Apple in the smartphone market," said Jagdish Rebello, iSuppli director and principal analyst.

Other consumer-electronics devices are likewise expected to increasingly use GPS. ISuppli sees 18% of laptops and 42% of hand-held video game players using the technology in 2014. Wireless Bluetooth technology is also expected to become more prevalent in devices ranging from mice to keypads.

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