Half of mobile phone revenue to come from multimedia accessories

The market for mobile phone accessories will generate over $32 billion in revenues in 2007, of which more than half will come from accessories that support multimedia features in handsets. This mainly includes mobile phone accessories such as headsets, memory cards, and data connection kits.

However, as we reported yesterday, the prevalence of multimedia features in smartphones is attracting the attention of the UK taxman.

According to ABI Research industry analyst Shailendra Pandey, "Expanding multimedia features in handsets are the most important factor contributing to the growth of the mobile phone accessories market." The popularity of handsets with music features is resulting in strong demand for earphones and headsets. Audio and video playback capabilities have resulted in users wanting to store large numbers of media files on their mobile phones, contributing to the growth of markets for memory cards. Also, the need for connecting the mobile phone to the PC/laptop for transferring multimedia and data files means a growing market for accessory products such as data connection kits.

In addition to batteries and chargers, says Pandey, "A number of mobile phone accessories such as earphones and data connection kits are now being provided in-box with handsets. This is because handset vendors are recognizing that to increase sales of their high-end feature-rich mobile phones and smartphones, they need to provide accessories that allow users to enjoy and benefit fully from the multimedia features provided in those handsets." Operators are also happy to see more accessories being provided in-box, as these help generate greater usage of their non-voice services. Nevertheless, aftermarket sales of these accessories are also witnessing strong growth, and many new players are beginning to enter and address the market.

ABI Research expects the market for mobile phone accessories to grow steadily in the next five years and generate over $80 billion in revenues in 2012. The continuing innovation and further advancements in technology, coupled with the increasing desire of customers to personalize their handsets, bodes well for the future of the market. The firm's recent study, "Mobile Phone Accessories" examines the market landscape and future potential for mobile phone accessory products. It discusses the various types of mobile phone accessories, their features and pricing, key suppliers, market outlook, and vendor market share analysis for key accessories, as well as providing in-depth analysis for both in-box and after-market mobile phone accessories.