Skip to main content

Huge Upside Potential for Mobile Device Accessories

The global aftermarket of accessories and services for mobiles phones has experienced consistent growth, with the smartphone category setting new market upside targets. The other related sector to watch will be media tablet accessories.

According to the latest marekt study by ABI Research, smartphones will drive $20 billion in aftermarket accessory revenues in 2012 -- accounting for more than half of the $36 billion that all aftermarket mobile 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 and content at ABI Research.

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 mobile device accessories.

As an example, 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 people choosing to spend more per accessory, and purchasing significantly 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 consumer needs or shifting mobile device use cases.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the