Web phones buoy cell phone biz

The cell phone business is suffering from lowered expectations as total sales fall behind projections. The one important exception to this gloom, however, is the explosion in high-end Internet-enabled phones, which have grown from five to almost fifty percent of retail store sales in the last year. According to one research group, these phones cost about a third more than conventional cell phones, have better displays, and are lighter despite the fact that the average cost of Net phones fell from $211 to $164 in the last year.

For information on the Web phone market, read news.com. For general information on the industry downturn, read forbes.com.