Smartphone Sales Up, Costs Down

CNET is reporting some great smartphone statistics based on findings from market research firm NPD Group.

Sales of smartphones rose 11% from 4Q 2007 (12%) to 4Q 2008 (23%). As is usually the case with evolving electronics, rising sales mean falling prices. The average cost of a smartphone these days hovers around the $200 mark, with carrier contracts that include data service plans to keep users connected. The report notes that 66% of smartphones sold in 2008 use a 3G wireless network — up from 46% from the previous year.

While the price of phones may be dropping, the carriers generally require a two-year contract for service, which can be costly or not, depending upon the users’ needs. Currently, the major smartphone players are:

iPhone — AT&T
BlackBerry Storm — Verizon
G1 — T-Mobile
PalmPre — Sprint Nextel

Smartphone users generally purchase more accessories for their phones — 52% compared to 41% of cell phone users. NPD Group suggests that with the falling handset costs, selling more accessories is a good way for carriers to turn a profit.

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