Tuesday, December 20, 2005

Latest phones let users dial in style

St. Paul Pioneer Press writes about how style and design is driving the handset market. Leading the charge is the hot-selling Motorola Razr, which is now offered in neon pink too.

Avi Greengart at Current Analysis said of the Razr, "This is not a hit. This is a smash hit. It's been extraordinarily popular with women. They'd line up around the block and say, 'I have to have one of those!'"

Greengart noted the handset as fashion accessory are for those who would "think nothing of spending $500 for a Prada bag and want a comparable phone to drop into it."

Roger Entner at Ovum estimated that "maybe 1 percent of the handsets in use fit the "high fashion" category," which also happens to be high margin. Another area being targeted are handsets that can change their look or "skin", such as the Sidekick from T-Mobile.

According to Entner said, the "market for accessorizing your cell phone is between $5 billion and $6 billion a year and has grown annually at a rate of 10 percent to 15 percent for the past three years."