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Consumers Buying Mobile Phone Accessories

The market for mobile phone accessories will generate over $32 billion in revenues in 2007 -- by comparison, that's more than the $28 billion expected from the Smartphone market.

Around 77 percent of the revenue will come from the sales of after-market mobile phone accessories and the remaining from in-box accessories shipments. Given the problems that many consumers experience with mobile phone rechargeable batteries, I wonder if this item will continue to be the most common practical accessory purchase.

According to ABI Research industry analyst Shailendra Pandey, "The number of mobile phone accessory products is expanding with new products driven by technology as well as by customer fashion and personalization needs appearing in the market."

"Handset vendors and mobile operators are showing greater interest as accessories provide high margins and also opportunities to promote their brand and expand their product offerings. The growing interest among mobile operators is also driven by the realization that mobile phone accessories can lead to higher ARPUs."

Handset vendors now recognize that to increase sales of their high-end mobile phones and smartphones, they need to provide accessories that allow users to fully enjoy and benefit from the features provided in those handsets. Surely, offering a battery that consistently holds a charge will be the primary consumer request in this category.

However, regardless of consumer's known practical needs, Nokia is addressing the handset accessory market with a distinctive approach of "Mobile Enhancement" products -- while Motorola is placing special emphasis upon the growing "Personalization" and "Self-Expression" trends.

ABI Research expects the market for mobile phone accessories to grow steadily in the next five years and generate over $80 billion in revenues in 2012.

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