Cell phones chip away at family budgets, turn out a recession proof industry

Cell phones chip away at family budgets, turn out a recession proof industry
Cellphones are increasingly chipping away at more and more of your disposable income, and it's not the price of the handsets to blame. More than half of the US now carries smartphones, and the spending on phone services rose 4% last year, all the while we were cutting back on dining out, clothes and entertainment.

The industry seems recession proof for now, as more an more people find out about the convenience to carry one device for many functions with you at all times, and the initial excitement, or the ever-increasing sophisticated features, makes them consumer much more data than before, with the respective bill increase.

In 2007, when the first iPhone popped up, the average household expenditure on cell phone bills was $1,100 per year, whereas last year we paid $1,216, and with the new carrier data plans the bill is likely to increase even further this year. That is a $116 increase, while the total increase for the other household items has been $67.

 In 2007, carriers took home $22 billion in revenue from mobile data, but last year this number shot up to $59 billion, and is expected to add another $50 billion in the next five years or so.

source: WSJ



1. downphoenix

Posts: 3165; Member since: Jun 19, 2010

easy to explain: people are getting dumber.

2. metalpoet unregistered

Easier to explain, carriers are money grubbing a**holes! And technology is getting better and better so people are willing to sacrifice to have that better technology! Their not entirely dumb but they are falling for all the marketing schemes*Cough Apple*

3. brd8951

Posts: 26; Member since: Nov 23, 2011

It just shows that we are all falling victim to the carrier's master plan. It started a few years ago when they mandated that 'feature phones' require a data plan....so they can receive updates. What a load of BS. People said, why spend $10/mo for data on a slow, crappy phone at dial-up speed when for $20 more I can get a much better phone and make better use of the data I'm paying for. Now that we are hooked on this 'digital crack' we can't stop. They know it, but unfortunately most people don't. Why do you think they want to cap your data? Because once your city receives 4G and you can start making real use of a higher data speed, you'll start using more data. Face it, once you've seen video content in High Def, nothing else compares. So now your data consumption increases dramatically compared to what it was 2 years ago. Just wait until Vzw rolls out a cable tv plan with all the spectrum they just acquired allowing you to watch more tv on your phone....you'll be wishing you didn't sell-out your of your unlimited data plan.

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