PORT WASHINGTON, NEW YORK, JUNE 23, 2008 – According to The NPD Group, the leading consumer market research company for the wireless industry, there was a 20 percent decline in year-over-year mobile phone handset purchases made by consumers in the U.S. from January through April 2008; however, a survey of mobile phone owners conducted in June 2008 shows that wireless retailers may be able to make up for lost revenue by redoubling efforts to market and sell accessories. While carrier stores still make up the lion’s share of mobile phone sales, there is room for improvement when it comes to accessories sales. Nearly half of mobile phone owners are likely to look to other competing retail establishments, like mass merchants and electronics stores, when purchasing accessories for their phones.
“With saturation increasing and the pace of new phone adoption slowing, there’s still room to increase revenues from the sale of mobile phone accessories like Bluetooth headsets, memory cards, and car kits,” said Ross Rubin, director of industry analysis for NPD.
NPD’s Mobile Phone Track reports that six in ten mobile phones are purchased in carrier stores; however, half of accessories buyers are not buying all of their accessories at the time of their mobile phone purchases. Thirty nine percent of mobile phone owners have not purchased any accessories for their mobile phones.
Although 60 percent of handsets purchased by U.S. consumers in the first quarter were able to play music, just 2 percent of mobile phone owners have purchased music kits, or received them as free promotions and only 3 percent have purchased stereo headsets. Similarly, just 18 percent of mobile phone owners purchased Bluetooth headsets or received them as value-add promotions, even though nearly 8 out of every 10 handsets sold in Q1 2008 were Bluetooth enabled.
Among the top reasons consumers gave for buying accessories at the stores where they purchase their handsets, were the following:
“Handset average selling prices continue to rise, showing that consumers are investing in greater functionality and personalization of their mobile experience,” Rubin said. “Whether consumers are in the store to buy a handset, receive technical assistance, or even pay a bill, carrier stores need to focus their energy – and consumers’ attention – on the latest and greatest phone accessories, or risk losing the sale to a competing retailer.”
Methodology: NPD’s Fast Checks survey was fielded in June 2008 to a nationally representative sample of men and women age 18 and older. NPD Mobile Phone Track analyzes mobile device sales data based on more than 150,000 completed online consumer research surveys each month. Surveys are based on a nationally balanced and demographically representative sample. Results are projected to represent the entire population of U.S. consumers.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com.