The NPD Group: 4G Handsets Grew to Encompass over One-Third of the Smartphone Market in 2011

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LTE poised to gain share of 4G smartphone offerings in 2012.

With all major U.S. carriers committing to LTE as their 4G future, it is clearly the cellular network technology that will determine the baseline for the next generation of advanced smartphones.

According to The NPD Group, a leading market research company, the fourth-generation (4G) smartphone market grew from 6 percent in the fourth quarter (Q4) of 2010 to 35 percent in Q4 2011. The most popular 4G network technology in smartphones was HSPA+, at 22 percent of smartphone sales. The only 4G network technology offered by AT&T until 2011 and still the only 4G technology offered by T-Mobile, HSPA+ received a tremendous boost in Q4, because it was the only 4G technology supported by the popular iPhone 4S.

One year after Verizon’s launch of the first commercially deployed LTE network, LTE-enabled handsets accounted for 7 percent of the smartphone market; however, consumers are exhibiting a strong association between LTE and 4G. More than a quarter (26 percent) of consumers who purchased LTE phones were specifically seeking 4G technology in 2011, compared to just 9 percent of all smartphone buyers.

“HSPA+, which has combined high throughput with practical power efficiency, has been a compelling evolutionary 4G upgrade option for carriers upgrading GSM networks,” said Ross Rubin, executive director, Connected Intelligence for The NPD Group. “With all major U.S. carriers committing to LTE as their 4G future, it is clearly the cellular network technology that will determine the baseline for the next generation of advanced smartphones.”

The percentage of smartphones supporting WiMax, the LTE alternative launched by Sprint in the summer of 2009, ended the year at 6 percent of the market after hitting a high of 10 percent in the third quarter of 2011. Based on The NPD Group’s monthly Mobile Phone Track service, the top-selling mobile phones for each 4G technology in 2011 were as follows:

  •     LTE: HTC Thunderbolt
  •     WiMax: HTC EVO
  •     HSPA+: Apple iPhone 4S

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 2,000 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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