As Smartphone Prices Fall, Retailers Are Leaving Money on the Table, According to The NPD Group

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Among U.S. consumers who considered purchasing phones in the $200 to $250 price range, 64 percent ended up purchasing a phone for less than $200.

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According to NPD’s new Smartphone Track service, prices are falling even though many consumers originally considered paying more

According to The NPD Group, a leading market research company, the share of mobile phone handset sales that are smartphones continues to climb. The share of U.S. mobile handset sales that were smartphones reached 59 percent in the third quarter (Q3) of 2011, an increase of 13 percentage points since Q3 of 2010. Based on the latest data from NPD’s monthly Mobile Phone Track service, average selling prices for smartphones have declined for four consecutive quarters, reaching $135 in Q3.

According to NPD’s new Smartphone Track service, prices are falling even though many consumers originally considered paying more. Among U.S. consumers who considered purchasing phones in the $200 to $250 price range, 64 percent ended up purchasing a phone for less than $200. Led by continued steady sales for Apple’s iPhones, the top five best-selling mobile phone handsets in Q3 were as follows:

1.    Apple iPhone 4
2.    Apple iPhone 3GS
3.    HTC EVO 4G
4.    Motorola Droid 3
5.    Samsung Intensity II

“Even as smartphone prices continue to decline, the accessory attachment rates for smartphones in Q3 was unchanged since last year,” said Ross Rubin, executive director of industry analysis for NPD. “This indicates further opportunity for retailers to improve revenue numbers by focusing marketing efforts on selling more accessories.” The top U.S. mobile accessories brands in Q3 were Zagg, Otter Products, Just Wireless, Motorola, and Incase Designs.

Information this press release is from “Mobile Phone Track” and “Smartphone Track,” both of which report on the activities of U.S. consumers, age 18 and older, who reported purchasing a mobile phone or smartphone. NPD does not track corporate/enterprise mobile phone purchases.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, entertainment, fashion, food, home and office, sports, technology, toys, video games, and wireless. For more information, contact us, visit http://www.npd.com/, or follow us Twitter at https://twitter.com/npdgroup.

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