 rather than voice services. This, of course, means we can expect the industry landscape to change as well, with leading players needing to differentiate their products, resulting in new standards, alliances, partnerships, and investment opportunities. Vendors are finding that an increasing proportion of their sales are occurring in emerging markets, and these are not the markets for the James Bond gadgets. The Handset Revolution Instead, they represent a new category of consumer, often at poverty level, with very low expenditure potential. However, they do represent a pool of more than a billion users, SO low-end, entry-level products for these regions will also play a key role in generating revenues. From Mobile Phones to Multimedia Handsets What is occurring in the world of handsets can be simply described as a transition from mobile phones to multimedia handsets; the new generation of devices can handle functions that include not just voice services but also text, graphics, images, animation, audio, and video. The handset industry has been undergoing a steady evolution, as mobile phones are transformed into high-capacity multimedia devices running intuitive user interfaces. We have already gone through four phases in the development of mobile multimedia devices, and we are now embarking on the fifth stage. It all began, in 2001-2002, with the introduction of chord ringtones, replacing what were boring monophonic tones with chords and tunes more pleasing to the human psyche. Much demand and competition were seen in this arena, ultimately producing a downloadable ringtone market with great revenue potential. The second upgrade occurred in 2002-2003, with the introduction of color screens and easy-to-use graphic interfaces. The third major development, taking place in 2003-2005, inte- grated the camera on the handset. In fact, an increasing number of today's devices boast more bells and whistles than most manual cameras, including features such as autofocus, red-eye reduction, digital zoom, and flash. Camera tec