NPD: Cellphone accessory sales to catch fire

While cellphone sales may be on the decline in the United States, retailers may be able to bridge the gap with accessory sales, according to a new report from consumer market research firm NPD Group.
The firm said mobile handset purchases declined 20% year-over-year in the U.S. from January through April, and carrier stores still account for the majority of mobile-phone sales. But about half of customers are likely to turn to retail establishments like mass merchants and electronics stores for accessory purchases.
“With saturation increasing and the pace of new phone adoption slowing, there’s still room to increase revenues from the sale of mobile-phone accessories like Bluetooth headsets, memory cards and car kits,” said Ross Rubin, director of industry analysis for NPD.
The firm’s latest research indicates six out of 10 mobile phones are purchased in carrier stores, but half of accessory buyers do not buy their accessories at the time of their mobile-phone purchase. And nearly 40% of mobile-phone users have not purchased any accessories for their mobile phone at all.
Music accessories represent a large untapped market, according to NPD. The firm said that, while two-thirds of handsets now have music capability, only 2% of mobile-phone owners have purchased or received a music kit, and only 3% have purchased stereo headsets. In addition, while 80% of handsets are Bluetooth-enabled, only 18% of users have purchased Bluetooth headsets.