NPD: Q3 Smartphone Sales Share Hits 59%

By Joseph Palenchar -- TWICE, 11/14/2011

Port Washington, N.Y. - Smartphones accounted for 59 percent of all handsets sold to consumers in the third quarter, up from a year-ago 46 percent, while their average retail prices continued to fall, The NPD Group found in a consumer survey.

The average smartphone selling price in the quarter was $135, down for the fourth consecutive quarter, NPD said. Carriers and suppliers, however, might not have had to bring out lower-priced models to accelerate smartphone share, NPD found. Many consumers originally considered paying more for their smartphone, NPD's survey found. Among U.S. consumers who considered purchasing phones in the $200 to $250 price range, 64 percent purchased a phone for less than $200, the survey found.

The survey points to a growing need for retailers to attach more accessories to a smartphone sale to make up for the lost revenue, NPD said. "Even as smartphone prices continue to decline, the accessory attachment rates for smartphones in Q3 was unchanged since last year," said Ross Rubin, NPD's industry analysis executive director.  "This indicates further opportunity for retailers to improve revenue numbers by focusing marketing efforts on selling more accessories."

The top U.S. mobile accessories brands in Q3 were Zagg, Otter Products, Just Wireless, Motorola and Incase Designs, NPD added.

For the survey, NPD surveyed consumers 18 years and older who said they purchased a cellphone. The survey excludes purchases by corporations and other businesses.