Cell Phone Accessory Aftermarket Thrives

ABI Research has recently published the results of a study, which found that two-third of revenue earned from sales of cell phone accessories come from the aftermarket, with protective cases and memory cards being the most popular items when compared to other cell phone add-ons.

According to the research company, as handset makers move more and more accessories out from the box and put onto retailers’ shelves, the aftermarket is expected to show a fast growth rate. This means that in the future, fewer accessories will be included in the box when consumers buy a new phone.

"Mobile operators and mobile phone vendors see that the only return from including a subsidized accessory in the handset box is customer satisfaction," said industry analyst Michael Morgan. He also added that these in-box items may have some intangible value, but the vendors and operators have realized that accessories for retail are in fact high-margin products that will generate actual income.

By selling cell phone accessories, handset makers can increase sales and extend the product cycle of their high-end devices, while mobile operators can generate higher average revenue per user as they provide better comfort and convenience to subscribers. This makes putting handset add-on products on shelves an attractive business not only for OEMs, ODMs, distributors and retailers, but also for handset vendors and mobile operators.

Among numerous add-on items, memory cards and protective silicon carrying cases or sleeves enjoy the highest sales, probably as a result of the popularity of smartphones such as Apple’s iPhone, Palm’s Pre and RIM’s Blackberry. The demand for memory cards is driven by the media-centric features which require extra memory capacity; consumers also tend to use protective cases to take better care of the smartphones because of their higher value.

Besides, Bluetooth headsets and wired headsets for enjoying music also belong to the fast-growing group. On the contrary, the demand for add-on GPS receivers is declining as more and more handsets are integrated with GPS navigation nowadays. Sales of accessories also varies in different regions: belt-clip holsters are sold better in North America and Western Europe, while Asian consumers tend to prefer hand-straps and neck-straps.

To meet the ever-growing needs of consumers and stay in line with the increasing popularity of smartphones, it can be imaginable that the cell phone accessory aftermarket will continue to thrive in the coming years.

Tags: Memory Card, Silicon Skin Case, Bluetooth headset, Cellular Handsfree, Belt Clip / Holster, Snap-on Covers, Phone Straps