US Mobile Phone Prices Drop

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The average selling price (ASP) of mobile devices in the US declined by 3 percent year-on-year in the third quarter, according to the NPD Group, a market research firm. The firm said that the ASP for mobile phones in the US fell to US$85, down from US$88 in the year earlier quarter. The decline was attributed to buy-one-get-one (BOGO) offers and other price reductions on smartphones. “Carriers have been heavily promoting the latest advanced handsets, which has spurred recent growth in the smartphone market and an increase in the number of smartphone brands available to consumers,” said Ross Rubin, director of industry analysis at The NPD Group. “For example, while there was only one Android device available in the fourth quarter of last year, now there are eight available from three major carriers.” Around 28 percent of handset sales were smartphones last quarter, the firm said.

According to NPD, smartphone price reductions by operators helped push the Blackberry Curve, iPhone 3GS, and iPhone 3G to the top of the sales rankings for mobile phones. LG dominated sales of feature phones (ie: phones sold without an operating system) with LG enV3 and LG enV Touch rounding out the top five sellers. Mobile phone accessories sales reached US$2.3 billion in 3Q09, an increase of 12 percent over the prior quarter. “Growing revenue opportunities offered by accessories and service are just two ways that handsets offer revenue potential beyond someone switching carriers,” added Rubin.

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