With total cell phone sales on the decline, you might be surprised to hear that smartphone sales have gone up recently. There are many factors influencing this shift the market is seeing from “conventional” cell phones to the more ambitious, do-it-all-from-wherever smartphones.
Shifting Demographics
- According to The Age, 71% of family phone decisions are made by women. Apparently when Mom is running around between work, home, practices for the kids, and PTA meetings, she wants to stay connected - “In the past year the number of American women using smartphones has doubled to 10.4 million, growing at a faster pace than among men.”
Shrinking the Smartphone Premium
- With high-capability, brand-name smartphones on the market for less than ever before, purchasing a smartphone is a much softer hit to the wallet than in previous times. For example, AT&T’s Palm Centro goes for $99.99 with a plan and Apple just announced the newest iPhone, which will be selling for only $199.99 when it is released July 11th. Compared to the first iPhone’s astronomical introduction price, this is a steal for a thinner, faster version.
- Along with lower smartphone prices, carriers are offering inexpensive data and voice plans as well. The U.S.’s two largest providers: Verizon and AT&T both have voice and data bundles for as little as $79.99.
Improving Technology
- Increased mobile wireless connectivity, faster internet speeds, and cheaper data plan prices should all be in the near future, as the FCC increases band availability, according to CEA, making the smartphone more accessible, and more practical to the average consumer.
With the rapid improvements in smartphone technology and usability, this blogger predicts it won’t be long until smartphones overtake conventional cell phones, even though only 11% of U.S. adults are currently on the smartphone bandwagon. With the ever-increasing need to be connected, functioning, and working (even when we aren’t at work), iPhones and Blackberrys will continue to cater successfully to the productivity-driven consumer. This healthy competition will only expedite the shift toward more accessible smartphones, while less prominent competitors, like LG, Samsung, and HTC fight to attract customers from the consumer-ruling Apple and corporate-king RIM. More on the Smartphone Revolution
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Tags: Blackberry, iPhone, iPhone 3G, Smart phone, Smartphones
October 10th, 2008 at 2:26 pm
[…] in today’s market, this would be a great move for Motorola as it has been struggling in the shift from simple cell phones to smartphones. (Thanks, […]