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Free handsets are good, but style is better

BOSTON—Place your finger on the pulse of U.S. consumers desperately seeking a mobile phone this summer and you find all the attributes that makes anything a success in America: It’s got to standout from the crowd and it must be stylish and/or “free”—after subsidies and rebates, naturally. Under pressure to choose between stylish at a price and “free,” free is key. Convenience, represented by Bluetooth capabilities, is desirable as well.

 
Samsung Electronics Co. Ltd.’s t509 leaped onto the list at No. 2, representing the only candy bar form factor on the list and, reputedly, the thinnest phone on the market.
 

Top-10 Most Shopped for Phones*

Rank  Phone Name (Carrier)                      Bluetooth       Free**

1.              Motorola RAZR, All Colors                   YES             NO

            (Cingular, T-Mobile, Verizon)

2.              Samsung t509 (T-Mobile)                    YES             NO

3.              Samsung e635 (T-Mobile)                    NO              YES

4.              Nokia 6101 (T-Mobile)                         NO              YES

5.              Sony Ericsson Z520a (Cingular)        YES              YES

6.              Motorola V557 (Cingular)                    YES             YES

7.              T-Mobile Sidekick II (T-Mobile)            NO              NO

8.              Verizon PN-215 (Verizon)                    NO              YES

9.              Motorola PEBL (T-Mobile)                  YES              NO

10.           Sony Ericsson W600i (Cingular)          YES              NO

Outside the free phones that comprise half the list, the phones exhibit a unique form factor: the Razr and t509 are thin, the Pebl has a unique hinge and finish, while the Sony Ericsson Mobile Communications L.P. W600i and Danger Inc.’s Sidekick II possess swivel hinges and music features.

To convert consumer interest in these models into purchases, Compete suggested that carriers and handset vendors must craft their pricing and promotional efforts.

Compete uses an online survey that taps more than two million Internet users to measure demand for specific handset models.

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