Analyst: Smartphones To Take Off Like Rocket, iPhone Will Dominate

Apple is leading cellphones into a “new world order,” says one Wall Street analyst, and will clean up as smartphones become a big fat chunk of the overall cellphone market.

RBC analyst Mike Abramsky on Tuesday upped estimates for Apple, RIM, and Palm as smartphone sales take off — and Apple in particular will benefit selling 50 million iPhones.

Abramsky says smartphone penetration will be a whopping 35% of the global cell phone market by 2012 (504 million units). Apple and BlackBerry maker RIM will dominate, but Palm will be along for the ride too (if it survives the short term) because of its pretty good WebOS software.

Abramsky forecasts:

Apple: FY11 estimates $50.3 billion revenue (18% year-on-year growth) on 49.3 million iPhones. Price target upped to $250 from $190.
RIM: FY11 estimates $21.2 billion revenue (32% y/y growth). Price target $150 from $100.
Palm: FY11 estimates $3.2 billion revenue (52% y/y growth). Price target $25 from $18.

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Report: Silicon Alley Insider.

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