Smart phones driving global mobile accessories segment to windfall profits
Smart phones are an in thing for the current era of communication, the growth in sales of these smarter versions of mobile communication devices is forceful as they are acquiring bulk profits year after year. The requirement for the best and the latest mobile device in the market is resulting in the high sales chart doing a world of good to the industry. The global mobile accessories industry which is directly connected to the mobile phone segment is ought to reap benefits too.
Initially, the mobile accessories segment didn’t find much of a foothold and was considered as a secondary market having mere presence. However, the developmental changes in the technology world have changed that mindset in the present day.
Mobile Accessory Industry Growth:
Going by the report released by the Global Industry Analysts Inc (GIA), the market for global mobile accessories industry is predicted to reach the $ 84.6 bn nark by the end of 2018. This news has already bought a profit wave into the industry as many new players are planning to enter the once discouraged industry. The escalating range of usability in the smart phone segment and their additional functions being added on a routine basis are opening up the markets for their accessories worldwide.
The expansion patterns for mobile industry including the smart phone section and the mobile accessories market can be imagined by the comparison that presently, around 5.9 billion people own a mobile device out of the total world population of 7.2 billion. The industry further is penetrated at a racing rate of 80%. Now, that’s some instance for growth.
Heavy Competition favoring the customers:
Moreover, the declining charges of the services like voice messages, Internet connectivity, 3G, 4G technologies are pulling in more users than ever. The average falling prices of mobile devices inclusive that of the smart phone range is sighted as another colossal reasoning for the upward user’s count. The number of mobiles per person is already exceeding by 1.5 and this is expected to surpass the world population in the years to follow. The introduction of features like the WIFi technology for the mobile phones and spacious memory cards are also in craze these days, their usage graph is expected to only grow further in the future.
As proved many a times, the Asia Pacific region is the world leader when it comes to usage of the mobile devices as well as the mobile accessories. The recent market research report on the same suggests that the industry in the region is growing by a CAGR of almost 16%. Strong demand for smart phones, the decreasing rates of the devices, healthier economic condition and the tough competition along with the falling service charges are pointers resulting in the tremendous growth rate. China and India are two major countries that are predicted to play a vital role in developments that are timed in the future.
SMART vs. SIMPLE mobile phones:
Thanks to the brisk economic status, the consumer spending capacity is as high as $60 per device for the smart phone segment whereas, the same is $30 per device for the featured mobile devices. This higher capacity of spending is due to the multiple features, smarter and simpler operating platforms and the widespread sorts of activities that are doable using a smart phone.
The market is riding high on potentials for the global mobile accessories market and it is estimated that by the end of 2016, half of the total revenue of the industry will be rooting up from the smart phone segment alone.
Leading Players in the Industry:
Scan Disk, Apple Inc, Nokia Corporation, Plantronics Inc and a few others are ranked as the front line players of the global mobile accessories industry.