Mobile Handset Accessories Market to Turn Over Nearly $55 Billion This Year, Says ABI Research

• Press Release
• Source: ABI Research
• On 10:05 am EST, Tuesday November 10, 2009

NEW YORK--(BUSINESS WIRE)--By the end of 2009 the world’s mobile handset accessories market will have chalked up a value of nearly $55 billion. That represents a small decrease from the 2008 figure, surprising only in that the decline hasn’t been larger. “While improving slightly,” says industry analyst Michael Morgan, “handset accessory market growth will remain somewhat sluggish in 2010, and not until 2011 will the 2008 figure be surpassed. After that, we expect, strong growth will resume.”

Within that overall picture, certain segments – notably the very important memory card market – face particular challenges. The memory card market, says Morgan, has been so oversupplied that selling prices are barely above production costs. Those conditions may be starting to change, however. “While it’s always dangerous trying to call the bottom of a market, very recently it has begun to look as if memory card prices are stabilizing and even starting to rise slightly.”

One positive result of the low prices – positive for the consumer – is the increase in capacity of cards that are offered “in the box” with mobile handsets. Whereas 512 MB or 1 GB cards were formerly the norm, the low prices mean that buyers are pleasantly surprised to find cards up to 8 GB accompanying their phones. That’s seen as a positive selling point by handset vendors, since the multimedia capabilities of many models today chew through storage and processing power as never before.

Faced with the commoditization of their products, some memory vendors are starting to experiment with new ways of increasing the cards’ value to consumers, such as pre-loading them with music, or having a card include both a video game and supporting software, so when it is added to a phone, it will not only provide the game but improve the device’s gaming capabilities.

ABI Research’s “Mobile Accessories Market Data” (http://www.abiresearch.com/research/1004538) provides critical data on global shipments and revenues of key mobile handset accessory segments including handset chargers, batteries, corded headsets, Bluetooth headsets, memory cards, data connection kits, carrying/protective cases, portable speakers, external GPS receivers, and hands-free car kits.

It forms part of the Device Accessories Research Service (http://www.abiresearch.com/products/service/Device_Accessories_Research_Service), which also includes a Research Report, Research Briefs, Market Data, ABI Insights, and analyst inquiry support.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advise thousands of decision makers through 27 research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

ABI Research
Christine Gallen, 516-624-2542
pr@abiresearch.com