Smartphone Accessory Revenues To Reach $38 Billion By 2017: [Study]

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An augmenting demand of Smartphone has stimulated the business of apps developers and accessories vendors. Indeed, it’s very difficult to find out how much revenue could be generated from the accessory products this year. But, an analysis firm—ABI Research—has estimated that Smartphone aftermarket accessory products could drive $20 billion revenue this year—which is more than the half of the overall aftermath accessories revenue from accessory products this year. The firm has also reported that the revenue from Smartphone aftermath accessory products will reach to $36 billion by 2017.

On the contrary, demands of feature mobile handsets are continuously decreasing quarter-over-quarter—especially users in the devolved countries are not interested to own the feature mobile handsets. It’s expected that the revenue from feature mobile handsets accessories would declined to $12 billion by 2017.

Senior analyst of device, applications & content—Michael Morgan—said, “The increasing penetration of Smartphones is driving a shift in accessory design toward smart accessories that drive higher levels of consumer interaction, product value, and brand recognition. For new market entrants, developing brand recognition is paramount in capturing market share from the incumbents. This is best accomplished by the development of engaging, innovative accessories that extend the value proposition of today’s mass market accessories.”

We might see here a difference in consumer (Smartphone and feature phone) spend on accessories per device. Future phone consumers spend an average of $28.17 on accessories per device, while Smartphone owners spend almost twice ($56.18) more on accessories per device compare to feature phone users.

Indeed, there’s huge a opportunity for mobile accessory vendors, distributors and retailers to earn high margin from the sales of mobile handsets accessory products. The scenario is changing; OEM manufacturers are more realizing on accessories in order to enhance the sales of the products cycle and to generate higher ARPU. In addition to these, mobile handsets accessories are quite helpful for OEM to create brand value along with the promotion of their products.

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