The iPhone effect is "truly filtering through" the handset market as other OEMs strive to remain competitive, according to ABI.
Features that look set to proliferate and become central to enhancing user interface experiences include touch screens, touch pads and accelerometers facilitating tilt and shock sensing, as well as haptics providing tactile feedback.
Stuart Carlaw, vice president at ABI Research, said: "Smart operating systems are continually being optimised to run on processors with lower performance.
"There is a strategic move to support smart operating systems in single chip midrange devices in order to unlock more data revenues.
"The market is currently dominated by Nokia and Symbian. However, the coalescence of the framework wars in the Linux environment, and the growing stature of Windows Mobile, will enable new competitors to put pressure on this established axis."
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