Cell Phones Sales Flatten, But Smartphone Sales Rise
August 19, 2008 at 11:59 AM (PT)
A NPD survey found that cell phone use may have reached a saturation point in the U.S. ... but that may be good news for music and label interests. The report attributes the economic slowdown to the fact that U.S. mobile-handset sales fell 13% in the second quarter -- around 28 million units -- compared to the same quarter in 2007. What's more, since more than 80% of Americans already own a phone, their two-year contracts make it more expensive to upgrade before the contracts expire.
The good news is that Americans are buying more feature-rich phones. Smartphone sales increased to 19% of all mobile-phone sales in the second quarter, a 9% increase from the same period a year ago. NPD also noted that 81% of all phones sold in 2Q were Bluetooth-enabled, compared to 69% last year; 65% of phones sold during the quarter were music-enabled, compared to only 45% last year.