US markets seem to have a tough time competing with the Feature phones when it comes to overall sales of mobile phones. The NPD Group reveals Feature phones represent a higher percent of new handset sales, even as the smartphone market share continues to grow. As per the reports by NSD Group, Future phones still rule the market when it comes to sales of mobile phones.
Information revealed by NPD states that unit-sales of new feature phones fell 5 percentage points to 72 percent of new handset sales in the second quarter. On the other hand new smartphones sales reached 28 percent of gross consumer purchases, which claims to be a 47 percent increase in the category’s share since last year.
“Despite their ties to pricey data plans, the rich Internet access capabilities of smartphones are attracting consumers wooed by lower device prices,” stated Ross Rubin, director of industry analysis at The NPD Group.
The US market has supposedly witnessed an increase in the overall handset sales volume by 14 percent year over year in Q2 2009, as there has been an increase in sales revenue by 18 percent as well. There is also an increase in the average selling price of all mobile phones since it increased by 4 percent year over year, reaching $87 in Q2. Moreover NPD’s Q2 2009 ranking of handsets showed the LG enV2 and Samsung Rant led feature phone sales. According to the reports Apple iPhone 3G and RIM Blackberry Curve were the top-selling smartphones.
“Feature phones are taking on more of the physical characteristics of smartphones, and often offer greater exposure to carrier services,” Rubin explained. “Although their user interfaces continue to improve, the depth of their applications generally lags behind those of smartphones. With the price gap between smartphones and feature phones narrowing, to remain competitive feature phones need to develop a better Web experience, drive utility via widgets, and sidestep the applications arms race.”
20 % of all new handsets are equipped with Wi-Fi capability now, adding up more to its percentage. Wi-Fi capability has increased three-fold since last year. Consumer demand for touch screen on both feature phones and smartphones have also increased to a great extent since last year, where 26 percent of all new handsets is purchased in Q2 including this feature: physical QWERTY keywords. With bringing comparisons available 35 % of handsets seem to have been sold.
So it looks like Feature phones still rule in spite of the apparent popularity of smartphones.