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 $4 Billion Opportunity for Satellite IoT

In an era where wireless connectivity is pervasive, Satellite Internet of Things (IoT) can change industries, offering leaders unprecedented opportunities to drive efficiency and innovation. As industries across the globe seek to enhance operational efficiency and sustainability, satellite IoT emerges as a pivotal enabler. According to a worldwide study by ABI Research, the Satellite IoT market is forecast to reach $4 billion by 2030, with over 26 million connections anticipated. "Prominent satellite IoT providers such as Inmarsat, ORBCOMM, Globalstar, Myriota, and hiSky have been actively working together with their partners to expand their service offerings and enhance connectivity solutions," said Jake Saunders, vice president at ABI Research . Satellite IoT Market Development The satellite IoT market's expansion is largely fueled by its application across key verticals, including agriculture, energy and utilities, fisheries and aquaculture, and environmental monitorin