Circle of Friends: Which Accessories to Sell

3Q 2009 | IN-1004474

The handset industry is currently facing one of its toughest times ever. With the market for feature phones dissolving into either low-margin, low-cost handsets or into the smartphone market, handset vendors need a way to maintain margins, sales levels, and interest in their handsets. This is where accessories come into play: handsets come with an almost de facto high sales margin for accessories. While often considered extraneous to the direct LOB of selling handsets, accessories offer solid returns and high margins while strengthening brand image. The key is to making sure you are the one holding the check after the sale. To this end, there is still quite a bit of confusion on how to capture and maximize the revenue generated from handset accessories. How can the handset industry best leverage this opportunity?

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