Music Enabled Phones

This month’s Wireless Bulletin reports on music enabled phones from a holistic perspective, encompassing sales of new handsets, penetration into the subscriber base, and actual usage of this functionality. We hope you find this new data-focused format informative and useful to your business.

Sales of music enabled phones have grown from 18% in Q2 2006 to more than 38% in Q1 2007 – that’s 111% growth!

The result of all that growth in new handset sales? A 66% increase in the number of music enabled phones in the subscriber base during the same time. In Q1 2007, the number reached 15%.

The sheer volume of music enabled handsets is driving all-time high levels of MP3 player functionality usage – up 82% since Q2 2006. In Q1 2007, about 7% of subscribers used their phones as MP3 players.

  • However,the percent of people who have a music enabled phone and actually use it as an MP3 player has only grown 10%, from 43% in Q2 2006 to 48% in Q1 2007.

Conclusions:

Handset manufacturers are embracing and incorporating mobile music into devices, and carriers are also highlighting this functionality in devices they sell.

In turn, the percentage of music-capable devices in the install base is growing. 

Overall usage of MP3 functionality is also growing, as a direct result of there being more music enabled phones in the subscriber base.

However, still less than half of the consumers in the install base with music capabilities actually use the functionality, and this usage has not grown significantly over the past year.

 
© 2007 The NPD Group

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