Will the Apple iPhone Ignite the US Multimedia Phone Market?

Despite a rapid increase in the number of multimedia-capable phones, US wireless subscribers have not yet been persuaded to take advantage of these capabilities, reports In-Stat. More than one-third of respondents to an In-Stat wireless subscriber survey now carry a wireless handset that can play MP3 tracks, video files, or FM radio, the high-tech market research firm says. However, this does not necessarily mean that the features are being used.

"The growth in multimedia handsets has more to do with operators pushing multimedia handsets to the market, rather than a strong desire by consumers to adopt multimedia handsets or use multimedia services," says Bill Hughes, In-Stat analyst. "However, the announcement of the Apple iPhone, in January 2007, changes the underlying dynamics of the market, and may give it a significant boost to all wireless carriers if Apple can deliver on the hype."

Recent research by In-Stat found the following:

• The number of respondents to In-Stat's survey owning a multimedia handset doubled from 2006 to 2007.
• Few respondents without a multimedia mobile phone have an interest in acquiring one.
• More than 80% of respondents with handsets that have the ability to play MP3 tracks rarely, if ever, use this feature.

Posted to the site on 31st May 2007