Consumers Buy Fewer, But More Ad-Friendly Phones

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mobile_revolution_small.jpgADOTAS – Cell phone sales are down – but that may not be a bad thing for mobile advertisers. As it turns out, while sales have dropped 13% year-over-year, consumers who bought phones were snapping up the pricier models with ad-friendly bells and whistles, according to the NPD Group, a market research firm for the wireless industry.

So while mobile sales plummeted 13%, revenues only dropped 2%, to $2.4 billion. As in previous quarters, phones sold in Q2 2008 were, by and large, more feature-rich than those sold the year prior, the NPD Group reported. Handsets sold with a QWERTY keyboard saw the greatest year-over-year rise, with 28% of handsets sold with this feature in Q2 2008, versus just 12% the year prior.

Smartphone sales comprised 19% of all mobile phone sales in Q2 2008, an increase of 9 percentage points since the same period a year ago. Also this quarter 81% of phones purchased were Bluetooth enabled (up from just 69% from last year), and 65% of phones purchased in Q2 2008 were music enabled (versus 45% last year).

The average selling prices (ASPs) paid by U.S. consumers reached $84, an increase of 14% percent in Q2 2008 versus the same period a year ago; however, Q2 2008 ASP declined nearly 4% when compared to Q1 2008 ($87) due to price declines seen on brands like LG, Motorola, Nokia and RIM.

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