Let's assume that Handheld is going to get into the smartphone business (PDA's are basically a dead technology.) They are starting to introduce competitive products to go against the iPhone and Palm Pre, etc.. Consider the market for smartphones. Is this a growing market? Or is it simply another type of cell phone? Is this market basically saturated, so that cell phone users are simply upgrading with better technology ever so many years?

Here's the real question. If Handheld wants to grow their smartphone business, what do you think the feedback loop consists of to cause this growth? What are the cause and effect factors in the feedback loop that will create growth for Handheld? Describe the loop and how handheld will increase its sales in the face of stiff competition.