American Cell Phone Market Avoids Post-Holiday Slump

Telecom News Editorials Reports Glossary

5:30 am on May 10, 2006 | Category: Business, Mobile Devices, Cell Phones

A recent report from NPD Group confirms previous research that the US cell phone market was strong enough this year to avoid the typical post-holiday lull in sales.

A total of 34.8 million handsets were shipped to customers in the United States during the first quarter, which is an 11% increase over the same period last year.

“Surprisingly, the U.S. handset market continued its strong surge in the first quarter,” said NPD Group mobile device researcher, Neil Strother. “Normally, there is a seasonal drop in the first quarter after the holiday rush; however, these numbers reflect a very healthy market, and we’re seeing strong demand for replacement models and from new subscribers.”

The report also confirmed that Motorola kept its position as the top handset maker for American consumers, with Samsung also making gains. Motorola increased its market share by two points in the first quarter, to 29%, while Nokia and Samsung both wound up with 18% shares. LG placed fourth with a respectable 15%.

Another trend showcased in the report was the increasing popularity of Bluetooth-enabled cell phones which accounted for 18% of all sales, compared to just 9% a year ago.