Apple's introduction of its touch-activated iPhone seems likely to kick-start the touchscreen industry, a report claims.

A new report from the Handset Component Technologies service at Strategy Analytics claims that 115 million touchscreen-only phones will ship within two years.

They expect the iPhone to sell millions of units when it ships, and note that it's the user interface (which Apple has developed and heavily patented) that sets the iPhone apart.

"The introduction of the iPhone leads us to strengthen our existing view that the market for touchscreen phones is set to take off very soon," said Stuart Robinson, director of the Handset Component Technologies service at Strategy Analytics.

Robinson expects touchscreen manufacturers, Synaptics, ALPS, Cypress, Quantum Research and Immersion to gain more business as a result of the interest in their technologies generated by the iPhone.

As a result of climbing demand, the cost of such screens will be likely to decline by "about" 50 per cent within two years, the analysts explain.