Feature phones comprise overwhelming majority of handset sales in 2Q09, says NPD Group
According to The NPD Group, feature phones still rule the market, even as smartphone sales continue to increase their share of overall handset sales. Unit-sales of new feature phones fell 5pp to 72% of new handset sales in the second quarter of 2009, while sales of new smartphones reached 28% of overall consumer purchases – a 47% increase since 2008.
"Despite their ties to pricey data plans, the rich Internet access capabilities of smartphones are attracting consumers wooed by lower device prices," said Ross Rubin, director of industry analysis at The NPD Group.
Overall handset sales volume in the US grew 14% on year in second-quarter 2009, as sales revenues increased 18%. The ASP of all handsets increased 4% on year – reaching US$87 in the second quarter. LG enV2 and Samsung Rant led feature phone sales, while Apple iPhone 3G and RIM Blackberry Curve were the top-selling smartphones, the research firm noted.
Wi-Fi capability increased three-fold since last year, with 20% of all new handsets equipped with this capability. Touchscreens on both feature phones and smartphones have also seen tremendous growth since last year, with 26% of all new handsets purchased in the second quarter including this feature; physical QWERTY keyboards, by comparison, were available in 35% of handsets sold.
"Feature phones are taking on more of the physical characteristics of smartphones, and often offer greater exposure to carrier services," Rubin said. "Although their user interfaces continue to improve, the depth of their applications generally lags behind those of smartphones. With the price gap between smartphones and feature phones narrowing, to remain competitive feature phones need to develop a better Web experience, drive utility via widgets, and sidestep the applications arms race."
"Despite their ties to pricey data plans, the rich Internet access capabilities of smartphones are attracting consumers wooed by lower device prices," said Ross Rubin, director of industry analysis at The NPD Group.
Overall handset sales volume in the US grew 14% on year in second-quarter 2009, as sales revenues increased 18%. The ASP of all handsets increased 4% on year – reaching US$87 in the second quarter. LG enV2 and Samsung Rant led feature phone sales, while Apple iPhone 3G and RIM Blackberry Curve were the top-selling smartphones, the research firm noted.
Wi-Fi capability increased three-fold since last year, with 20% of all new handsets equipped with this capability. Touchscreens on both feature phones and smartphones have also seen tremendous growth since last year, with 26% of all new handsets purchased in the second quarter including this feature; physical QWERTY keyboards, by comparison, were available in 35% of handsets sold.
"Feature phones are taking on more of the physical characteristics of smartphones, and often offer greater exposure to carrier services," Rubin said. "Although their user interfaces continue to improve, the depth of their applications generally lags behind those of smartphones. With the price gap between smartphones and feature phones narrowing, to remain competitive feature phones need to develop a better Web experience, drive utility via widgets, and sidestep the applications arms race."
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