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Users spend twice as much on smartphone accessories than on feature phone supplementaries

Users spend twice as much on smartphone accessories than on feature phone supplementaries
The booming smartphone penetration is the engine of growth for a number of industries and accessories are probably the most obvious one. In 2012, the smartphone accessory industry will generate revenues of around $20 billion, more than a half of the $36 billion phone industry. And in five years, this number will grow to $38 billion in revenue measures.

But what’s interesting is not the pure number but the very essence of smartphone accessories. Unlike their feature phone counterparts which are more of a phone apparel type of product, the smartphone accessories are more sophisticated, with the possibility of them ending up being used a service or as the means to a service.

Also, smartphone users will spend an average $56 on accessories while for feature phone owners this figure only stands at $28 per device.

“The increasing penetration of smartphones is driving a shift in accessory design toward smart accessories that drive higher levels of consumer interaction, product value, and brand recognition,” ABI analyst Michael Morgan concludes in a research study. 

“For new market entrants, developing brand recognition is paramount in capturing market share from the incumbents. This is best accomplished by the development of engaging, innovative accessories that extend the value proposition of today’s mass market accessories.”

source: ABI Research via BGR


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