The NPD Group: Mobile Phone Consumers Shun Standard Keypads, in Favor of Touch Screen and QWERTY Keyboards All 10 of the top-selling mobile phones in the U.S. in Q4 2009 now boast touchscreens or QWERTY keyboards; Droid ranked fifth best-selling mobile phone in the U.S., despite late start PORT WASHINGTON, NEW YORK, February 9, 2010 - According to The NPD Group, a leader in wireless industry market research, feature phones are increasingly moving to new forms of input made popular by smartphones. Based on the latest data from NPD’s Mobile Phone Track, with text messaging continuing to be the number one motivating feature for mobile phone buyers, American consumers are increasingly purchasing handsets with touch screens or QWERTY keyboards. In fact all 10 of the top-selling mobile phones purchased in the fourth quarter (Q4) of 2009 came equipped with a touch screen, a QWERTY keyboard, or both. According to Ross Rubin, executive director of industry analysis at NPD, “Regardless of whether they opt for a data plan, consumers want richer user interface options; the humble keypad is losing in the race to optimize a handset’s surface.” Based on U.S. consumer purchases of mobile phones in Q4, the top 10 handsets were as follows: 1. RIM BlackBerry Curve (all 83XX models) 2. LG enV3 3. Apple iPhone 3GS (both models) 4. Apple iPhone 3G 5. Motorola Droid 6. LG enV Touch 7. RIM Blackberry Tour 8. Samsung Intensity 9. Samsung Solstice 10. Samsung Impression The Rise of the Droid In Q4 2009 Apple, LG and RIM all declined in unit share, and Motorola’s Droid, despite its mid-quarter launch, rose to the fifth most-purchased consumer mobile phone in the U.S. Rubin views Motorola’s successful introduction of the Droid — the only smartphone in the top five ranking with both a touch screen and a QWERTY keyboard -- as an early validation of the company’s decision to back the Android operating system (OS) as well as a testament to the promotion offered by its exclusive carrier Verizon Wireless. As smartphones and other feature-rich phones increase their overall consumer share of the handset market, it’s important to note that 46 percent of phones sold in Q4 2009 had QWERTY keyboards (compared to 31 percent in 2008) and 34 percent had touch screens (compared to 20 percent the prior year).
THE NPD GROUP: SMARTPHONES DRIVE MORE HANDSET SALES OVERALL, BUT LOWER PRICES STALL TOTAL HANDSET REVENUE GROWTH Recommendations from family and friends and consumer-service ratings lead motivators for smartphone buyers PORT WASHINGTON, NEW YORK, March 17, 2010 - According to The NPD Group, a leader in wireless market research, driven by promotions and lower prices, smartphones gained market share against non-OS-equipped feature phones. Smartphone share grew from 23 percent of the total handset market in the fourth quarter (Q4) of 2008 to 31 percent in Q4 2009. Nearly two-thirds of smartphones were purchased for $150 or less in Q4 2009, versus less than half purchased at that price level in Q4 of 2008. Thanks to these lower prices, smartphone sales were strong in Q4 2009; however, overall smartphone year-over-year revenue growth reached just 21 percent, which was far less than the 37 percent posted the previous year. “Although we are seeing more expensive models among the best-selling handsets, carriers are now offering some popular smartphones for less than $100,” said Ross Rubin, executive director of industry analysis for NPD. “As the average price of these highly capable devices continues to fall, the price of data plans and ease of use will emerge as more significant factors to limiting consumer sales growth.” Based on the latest data from NPD’s “Smartphone Market Update,” when it comes to purchase motivators for smartphones, consumers relied primarily on recommendations from family and friends (29 percent) or chose handsets owned by people they know (18 percent). This finding was especially prevalent among iPhone and Blackberry Curve buyers. Consumers also mentioned high consumer-service ratings as more important in the decision making process for smartphones (17 percent) than for feature phones (6 percent). When compared to smartphone buyers, feature-phone buyers focused more on ease of use, as a key purchase criterion. Smartphone buyers tend to care more about their phone’s available capabilities, the fact that it leverages the latest technology, and that it is considered to be a “cool phone”. With many carriers now offering exclusivity on specific handset models, smartphone buyers were more likely than the average phone buyer to choose the phone they wanted prior to choosing their wireless carrier. “Bolstered by the brands of their hardware and operating systems, smartphones have established strong identities in the marketplace,” Rubin said. “That means more consumers now have specific models in mind when choosing their handsets.”
Methodology: The NPD Group compiles and analyzes mobile device sales data based on more than 150,000 completed online consumer research surveys each month. Surveys are based on a nationally balanced and demographically-representative
sample, and results are projected to represent the entire population of U.S. consumers. Note: Sales figures do not include corporate/enterprise mobile phone sales.