Subject: [NEXTEL-1] Americans not interested in smartphones

From: [email-masked]
Date: Wed, 23 Jul 2003 20:55:09 -0400

Americans not interested in smartphones

Jupiter Research has found that when choosing a cell phone, USA consumers
prioritize small size and voice-related functionality over more advanced features
such as integrated digital cameras, games, PDAs or music players. Given the choice
of a free basic cell phone or paying for a cell phone with a built-in PDA, digital
camera or MP3 player (also known as a smartphone) - a choice offered by nearly all
U.S. carriers - most U.S. consumers were not willing to pay as little as US$49.
To make sense of the marketplace, Jupiter Research created a Handset Taxonomy,
identifying key attributes that define each device category. "We explored the
reasons vendors and carriers are aggressively creating and subsidizing converged
devices such as cell phones with built-in cameras, music or computing
capabilities. But those reasons have to be measured against actual consumer
demand," said Jupiter Research Analyst Avi Greengart.

Jupiter Research conducted an independent survey to assess U.S. consumer demand
for advanced cell phone features and to determine their willingness to pay for
added functionality at different price points. The new report analyzes the factors
that will enable or prevent a dominant mobile platform from emerging and provides
actionable advice for handset manufacturers, cellular carriers and application
developers. Separate action plans are provided for media, advertisers and
retailers dealing with the changing landscape.

"Basic cell phones with voice and text messaging capability will continue to make
up the majority of sales, followed by cell phones that can run small Java or BREW
applications without overly increasing cell phone size or price," Greengart said.
"But cell phones with cameras, MP3 players and/or PDAs will not be widely adopted
in the U.S.  over the next 12 months," Greengart added. Because interest in
converged devices is low, Jupiter Research advises that carriers and handset
vendors should create single purpose cell phones, PDAs and MP3 players, and allow
them to function as a single unit using Bluetooth wireless technology.

Posted to the site on 23-Jul-03

http://www.cellular-news.com/story/9340.shtml

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