GPS To Boost Cell Phone Sales - InformationWeek
IoT
IoT
Business & Finance
News
12/20/2007
06:22 PM
50%
50%
RELATED EVENTS
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

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.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
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.
Flash Poll