GPS To Boost Cell Phone Sales - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

GPS To Boost Cell Phone Sales

A market research company's survey found 24% want GPS on their next cell phone, while 19% want Internet access.

Spending on call phones, currently in the process of passing landline spending in the United States, is poised to get a turbocharge from navigation services based on GPS, according to a survey announced Thursday.

Leo J. Shapiro and Associates (LJS) found that Americans want GPS on their cell phones more than they want Internet access on the phones. Coupled with recent U.S. Labor Department statistics that reveal the crossover of phone spending from landline to cell phone is under way, the LJS survey indicates cell phone spending is likely to continue to grow in a sharp upward trajectory.

Moreover, GPS is a relatively unclaimed territory because it's appealing to a broad demographic and not just a narrowly concentrated segment of the population.

"GPS is displaying a rapid and unusual pattern of diffusion," LJS VP Owen Shapiro said in a statement. "Today's GPS-enabled devices are being widely adopted, including among the middle-aged and elderly."

The market research company sampled 450 Americans across the United States and found that 24% want GPS on their next cell phone, while 19% want Internet access. Just 6% of GPS users, many with car-based services, have the technology on their cell phones, LJS found, indicating there is a pent-up demand for GPS on cell phones.

In recent days, the Labor Department published statistics showing that the average annual household cell phone spending was $524 in 2006, almost as much as the $542 that the average family spent on landline phones. The total average overall cost per family of telephone usage was $1,087, the Labor Department said. The total figure also included $21 for miscellaneous phone services including phone cards.

The Department's Bureau of Labor Statistics' Consumer Expenditure survey found that cell phone expenditures increased rapidly from 2001 through 2006.

As an example of the robust cell phone growth, Verizon Wireless' wireless revenue increased 15% to 20% annually over the past five years while landline business remained flat during the same period, The Associated Press reported, adding that a Verizon Wireless executive noted that more than 90% of families already had a land line.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
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.
Sponsored Video
Flash Poll