Mobile
Commentary
5/29/2007
11:45 PM
Stephen Wellman
Stephen Wellman
Commentary
Connect Directly
RSS
E-Mail
50%
50%

Smartphone Accessories Make More Money Than Smartphones

That's right, there is more money in Bluetooth headsets and phone cover cases than in smartphones proper. According to researcher ABI, the market for smartphone accessories will hit $32 billion in 2007, much more than the $28 billion expected from the smartphone market.

That's right, there is more money in Bluetooth headsets and phone cover cases than in smartphones proper. According to researcher ABI, the market for smartphone accessories will hit $32 billion in 2007, much more than the $28 billion expected from the smartphone market.Roughly three-quarters of the accessory revenue will come from sales of "after-market" accessories, i.e. accessories sold separately from smartphones.

Here is a look at the booming accessory market:

Vendors and carriers alike are focusing on this growth segment because accessories typically carry high margins and serve to promote brands. Carrier interest, in particular, is driven by the fact that accessories offer consumers the opportunity to expand their use of their mobile handsets and service, leading to higher ARPU, the market analysis firm said.

Both Nokia Corp. and Motorola Inc. are pursuing the accessory market by emphasizing that the add-ons help subscribers fully utilize their handsets' capabilities as well as allow personalization of one's mobile use.

So you can expect Verizon and AT&T to battle Nokia and Motorola for the right to sell and brand your new headset and slipcover. Will carrier soon begin to subsidize smartphone accessories as a way to retain subscribers?

What do you think? How many of you buy accessories and add-ons for your smartphones? And which accessories do you buy? Bluetooth headsets? Smartphone covers? Let us know all about your smartphone add-ons.

Comment  | 
Print  | 
More Insights
InformationWeek Elite 100
InformationWeek Elite 100
Our data shows these innovators using digital technology in two key areas: providing better products and cutting costs. Almost half of them expect to introduce a new IT-led product this year, and 46% are using technology to make business processes more efficient.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Must Reads Oct. 21, 2014
InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and trends on InformationWeek.com
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.