Smartphones to drive $20 billion in aftermarket accessory revenues in 2012

Telecom Lead America: Smartphones are set to drive $20
billion in aftermarket accessory revenues in 2012.

Smartphones accessory will account for more than half of the
$36 billion that all aftermarket handset accessories will produce.

By 2017, smartphone accessories will grow to $38 billion in
revenues, while feature phone accessory revenues decline to $12 billion.

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,” said Michael
Morgan, senior analyst, devices, applications & content, ABI Research.

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,” Morgan added.

Feature phone consumers will spend an average of $28.17 on
accessories per device, while smartphone owners will spend $56.18 on
accessories per device.

The difference in spending is driven by a combination of
consumers spending more per accessory and purchasing more accessories for
smartphones as compared to feature phone owners.

While feature phone accessories tend to be basic
commodity-type products, smartphone-focused accessories are increasingly
looking to leverage on device applications and communication protocols that can
increase the design complexity and allow the accessories to become service
delivery platforms.

As smartphones continue to expand the value of mobile
handsets, accessories will need to equally deliver higher levels of product
engagement, customization, and predict consumers’ shifting mobility use cases,”
said Jeff Orr, practice director, devices, applications & content, ABI

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