US phone consumers: buying less, paying more
by Chris Ziegler 
posted Aug 22nd 2008 at 2:52PM
Fewer Americans are buying new ear candy these days than they were a year ago, according to a newly-released NPD survey -- but those that are still dropping coin are dropping more of it. An estimated 28 million cellphones came off shelves and into pockets in the second quarter of 2008, down a solid 13 percent year over year, but the increase in average handset price was nearly enough to offset the drop in volume altogether. Particularly notable was the fact that smartphone sales doubled in the past year, with full QWERTY models seeing the biggest gains; it's probably still a bit early to sound the dumbphone's death knell, but could it be on the horizon?
Filed under: Studies
Reader Comments (Page 1 of 1)
Sarig @ Aug 22nd 2008 3:16PM
While featurephones and smartphones will probably completely dominate soon enough, I don't think dumbphones will go entirely away.
I'm rather hesitant to bring my n95 out in a small boat fishing in rainy weather, or long wilderness treks, but bringing a less featured phone can be a lot better. They generally have longer battery, handle weather better, and have higher chances of working if you lose it in the sea and dries it afterwards ;)
mnemonicj @ Aug 23rd 2008 12:10AM
Yeah, but once you have a cheap phone that works, why spend money on a new cheap phone when that money could go toward a nice new expensive phone. The cheap phone that you take camping and boating, can get beaten to a pulp as long as it still makes a call.
I do agree about the two phones though. I have a work phone that runs Windows Mobile, has a QWERTY keyboard, EVdo, and lets me communicate in more ways than my laptop. But, over the weekend, I bring out my personal Nokia E50 that can last all weekend on one charge, is small and light weight, and can take a pretty good beating. My Nokia usually has a better signal too, but I guess that I really can't compare it since my phones use two different providers.
I think enough people have had cheap pieces of crap phones, and they realize that when you have a phone for two years, you want it to have a little something more. I have never received a free phone, I always pay extra for a phone, even with with a contract, and I have never been let down by any of cell phones I have owned. As the saying goes, "You get what you pay for."
bernardino @ Aug 22nd 2008 5:26PM
Companies raising prices during slowing spending, growth and rapid inflation? Shouldn't they be lowering prices so that consumers will spend more? Where are all the people that complain about the government raising taxes during a slow economy?
Will @ Aug 22nd 2008 10:38PM
it's not that the prices are going up, it's that they're buying blackberry's...iphones...and winmo devices instead of dumbphones. so they're naturally going to spend more, in fact the prices have come down...you can get a Curve on most carriers now, which is a steal for a Blackberry with the features that it has
ShogunMaster @ Aug 22nd 2008 6:04PM
I think more people would buy new phones if they'd start releasing some more, more often.
Where the hell is my Touch Pro?!
Bash2cool @ Aug 23rd 2008 6:41AM
yes dumb phones will come to an end. people are just now starting to realize that smartphones are better then dumbphones.
dumbphones will still be around of course...but just for the people who want a slim phone for just talk.
slamEVIL @ Aug 22nd 2008 9:21PM
i'm sure the $500-$600 iphone had something to do with it.
A.S. @ Aug 22nd 2008 10:26PM
i wonder if this includes people who are buying unlocked phones from overseas or whatever
xB Owner @ Aug 26th 2008 3:00PM
If companies like AT&T were to offer "dumb phones" or even feature phones with full QWERTY keyboards, I think you would see a resurgence in dumb phone purchases. I don't know how many people I have seen purchase a smart phone with a QWERTY just to be able to TEXT.
Now the question is, who is doing is smarter? Verizon or AT&T? AT&T can sell a more expensive smart phone who only really need a QWERTY phone. Not to mention the data plan most will sign up for to get the additional rebates. Verizon offers "dumb" or feature phones with QWERTY keyboards and sells a crap load of them. Their profit margins are probably lower and they don't get as large of a cut on data plans, but they could very well be making up for it in volume.