US Consumer Support for Basic Cell Phones

US consumers choosing a cell phone prioritise small size and voice-related functionality over more advanced features such as integrated digital cameras, games, PDAs or music players, according a survey by Jupiter Research, a division of Jupitermedia Corporation. Most are unwilling to pay even $49 extra for such 'smartphones'.

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) is offered by nearly all US carriers, who according to Jupiter Research Analyst Avi Greengart are 'aggressively creating and subsidising' such converged devices. Jupiter created a 'Handset Taxonomy', identifying key attributes that define each device category and used it to assess consumers' willingness to pay for the added functionality at various specific price points.

The report, entitled 'Next Generation Handsets: How To Succeed In Wireless Without Really Converging', analyses 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.

'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 US over the next 12 months'. 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.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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