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Smartphones dominate US online sales and will dominate quarter of phone in world in 2013

By • Mar 19th, 2009 • Category: ! Product News

 

 

 

Smartphones dominate US online sales and will dominate quarter of phone in world in 2013

Smartphones dominate US online sales, iPhone, BlackBerry Storm and HTC G1 biggest sellers for networks. Sales figures released today show that the high-priced flagship smartphones on sale at US mobile networks were their biggest earners – despite only just placing in the top ten for volume.

The Apple iPhone at AT&T, the HTC G1 at T-Mobile and the BlackBerry Storm at Verizon all ranked first smartphone for online sales revenue direct from their websites. All were the sites’ eighth or ninth best sellers in terms of volume.

Only the Samsung Instinct lacked the killer instinct at Sprint, placing seventh in terms of revenue and a poor 15th for volume.

Budget bonanza

Smartphones dominate US online sales and will dominate quarter of phone in world in 2013

The top selling handset at each network were, unsurprisingly, lower-end devices boasting cheap or free up-front price-tags. In fact, 99 per cent of the best-selling LG VX8350s sold at Verizon and 100 per cent of the most popular Motorola RIZR Z3 devices at T-Mobile were handed out for nothing.

“Generally speaking, online is the place to go for free phones,” said comScore Vice-President Brian Jurutka. “The LG Rumor, in particular, was a huge volume driver on Sprint’s site, with more than three times the unit volume of the next closest phone and 86 per cent of the units being sold for free.”

Smartphones dominate US online sales and will dominate quarter of phone in world in 2013

Overall, a significant proportion of each network’s online sales included free handsets. Verizon was the stingiest at 48 per cent, Sprint was next with 54 per cent, then T-Mobile with 61 per cent. Three quarters of phones sold on the AT&T website were given away for free – although usually with those bothersome long-term contracts.
Within four years, nearly a quarter of all mobile phones sold will be smartphones, according to high-tech analysts Juniper Research

It says that rising demand for complex multimedia-centric applications is forcing handset manufacturers to design increasingly smart mobile devices, which it thinks will prove recession-proof as pricing becomes ‘more attractive’.

Driving interest in smartphones will be the proliferation of online stores selling specialised applications that make these devices better suited to individual users’ needs.

Smartphones dominate US online sales and will dominate quarter of phone in world in 2013

300 million Apps and counting:

With around 300 million applications having already been downloaded from Apple’s App Store, Juniper says its high visibility and ease of use has prompted players such as Nokia, RIM, and Google to jump into the applications market.

Report author Andrew Kitson says, “As vendors increasingly open up the operating system software on their devices, so will the rate at which mobile handsets evolve into personalised Internet-centric mobile computers gather momentum. Very soon, the majority of new phones will be smartphones.”

The report also predicts annual smartphone sales to reach around 300 million, and says that device vendors seeing falling margins on handset sales will need to diversify into service provision with content deals with network operators.

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