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Smartphone Accessory Revenues Valued at $20 Billion in 2012
New York, New York - 18 Jun 2012
Smartphones will drive $20 billion in aftermarket accessory revenues in 2012, accounting 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,” says Michael Morgan, senior analyst, devices, applications & content. “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.”
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,” adds Jeff Orr, practice director, devices, applications & content.
ABI Research’s report, “Mobile Handset Accessories,” focuses on key handset accessories and the market for these products, including in-depth analysis for both in-box as well as aftermarket handset accessories. It also examines key market drivers and barriers to growth, acquisition channels, technological trends, and future market potential for handset accessories.
It is part of ABI Research’s Smartphones & Mobile Devices Research Service.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990. For more information, visit www.abiresearch.com, or call +1.516.624.2500.