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Multimedia adds bling to cellphone accessories growth

Posted: 03 Aug 2007 ?? ?Print Version ?Bookmark and Share

Keywords:cellphone accessories? handset market? smart phone?

The market for handset accessories is expected to reap more than $32 billion in revenue for 2007, thanks to the popularity of mobile phones with music and video capabilities, ABI Research said. Items such as headsets, memory cards for storing content and data-connection kits for linking a smart phone to a PC are expected to account for more than half of the accessories market this year.

The market as a whole is expected to grow steadily over the next five years, generating more than $80 billion in 2012.

"Expanding multimedia features in handsets are the most important factor contributing to the growth of the mobile phone accessories market," Shailendra Pandey, an analyst with the market research firm, said in a statement.

In addition to batteries and chargers, mobile phone vendors are increasingly providing earphones and data-connection kits in-box with handsets to increase sales of their high-end, feature-rich mobile phones and smart phones, ABI said. Wireless operators also are happy to see more accessories being provided in-box, since they help to generate use of nonvoice services, which means additional revenue.

Aftermarket sales of accessories also are seeing strong growth, which is resulting in many new players entering the market, ABI said.

Revenue from smart phone sales leaped 10 percent in the first quarter of this year compared with the fourth quarter of 2006, according to Infonetics Research. Sales of dual-mode phones, which are capable of accessing cellular and Wi-Fi networks, are expected to increase at a compound annual growth rate of 31 percent between now and 2010, topping $145 billion in the next three years.

Besides reducing the amount of minutes on the cellular network, Wi-Fi access provides a broadband connection to the Web, where handset subscribers can download video and music and access services.

- Antone Gonsalves
InformationWeek




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