Smartphone adoption continues to be on the rise, customers willing to pay top dollar

Nov 15, 2011 10:31 GMT  ·  By

Smartphone adoption continues to be on the rise, according to research conducted by the NPD Group, and Apple’s iPhone is leading the pack in Q3 2011 with not one, but two device models - iPhone 4, and iPhone 3GS.

The market research company showed in a report this week that the share of mobile devices that are labeled as “smartphones” continues to climb.

These account for 59 percent of the entire cell phone market in the third quarter of 2011, which translates into an increase of 13 percentage points since the year-ago quarter.

Average selling prices for smartphones have also declined four quarters in a row, reaching $135 in Q3 (based on the latest data from NPD’s monthly Mobile Phone Track service), which further spurred adoption.

In fact, “prices are falling even though many consumers originally considered paying more,” according to NPD’s new Smartphone Track service.

Their research has found that many ended up paying less than $200 even though they’d set up their mind to pluck $250 out of their wallets.

“Led by continued steady sales for Apple’s iPhones, the top five best-selling mobile phone handsets in Q3 were as follows,” says NPD: Apple iPhone 4; Apple iPhone 3GS; HTC EVO 4G; Motorola Droid 3; Samsung Intensity II.

“Even as smartphone prices continue to decline, the accessory attachment rates for smartphones in Q3 was unchanged since last year,” said Ross Rubin, executive director of industry analysis for NPD. “This indicates further opportunity for retailers to improve revenue numbers by focusing marketing efforts on selling more accessories.”

The NPD report ends with a list of top U.S. mobile accessories brands in Q3 2011, of which the group dishes out names such as Zagg, Otter Products, Just Wireless, Motorola, and Incase Designs.