Sunday, October 19, 2008

What are the top 5 most popular cellphones in the U.S.?

The cheap, voice-centric, clamshell handset still rules the American marketplace, as Motorola Inc.�s Razr V3 remains the top-selling handset in the country, according to recent data from NPD Group.

Yet smartphones claim three of the top five slots, with Apple Inc.�s iPhone 3G at No. 2 and Research In Motion Ltd.�s Blackberry Curve at No. 3 and Pearl at No. 5.

In that sense, NPD�s list reflects both market mainstays and upstarts. (The company is withholding proprietary data on the percentage of market share these devices command.)

Well-marketed feature phones, with a music emphasis, also do well: LG Electronics Co. Ltd.�s Chocolate rounds out the top-five list at No. 4.

�The voice, browsing and music features represented on this list speak to the diversity of portfolios the carriers must maintain for a diverse consumer base,� said Ross Rubin, analyst with NPD Group.

Each one of the top-selling handsets says a little bit about Americans� shifting preferences, too, according to Rubin.

The Razr still maintains �great mind share� among consumers who still find value in a voice-centric phone in a slim form factor, Rubin said. But the once-premium handset has become emblematic of carriers� popular offerings of inexpensive, often �free� handsets that entice subscribers.

The Razr V3, in one form or another, sells at all four of the top-tier U.S. carriers as well as many regional carriers and independent dealers. The downside, Rubin said: As the company spread the product far and wide, racking up enormous volumes, the Razr�s profit margin shrank, hurting Moto�s bottom line. Its presence at the top of the list � a position unchanged since NPD began tracking in 2005 � also is a reminder that Motorola continues to search for a follow-on handset platform.

The iPhone 3G, of course, represents the touchscreen smartphone at its best: a browsing monster with a fun user interface that has alerted Americans to the possibilities of a mobile, desktop-like experience that has reshaped the market. Rubin said that the 3G model�s pull on subscribers outside its perch at AT&T Mobility � some 30% of iPhone 3G buyers switched to AT&T Mobility from their original carrier to get the device, according to NPD � is actually less than the original iPhone�s pull.

�Verizon Wireless emerged unscathed upon the launch of the first iPhone (last year),� Rubin said, �but Verizon gave up more customers this time.�

It may be those customers, Rubin speculated, that were louder in their complaints about 3G connectivity on AT&T Mobility�s less mature 3G network, due to a more mature performance on Verizon Wireless� 3G network.

As for RIM, its success in transitioning from an enterprise-only approach to embracing more consumer-friendly designs and form factors, and its ubiquity among carriers, is well represented by the Curve and Pearl handsets, the analyst said.

Rubin attributed the success of the LG Chocolate � an exclusive at Verizon Wireless � in part to canny promotion from the carrier around the device�s music capabilities.

So, are Americans� tastes really shifting and embracing these myriad features and forms? Or are carriers� subsidies (and thus retail pricing) and marketing really driving the bus?

�Is it carrier push or consumer pull?� Rubin asked, rhetorically. �It�s a little of both. Put another way: Are devices changing or are consumers changing? It�s both.�

�It�s a little more consumer pull than carrier push,� the analyst added. �With the iPhone, you don�t have a wide array of network-based revenue streams that typically get pushed into high-end feature phones. The iPhone puts greater emphasis on browsing the Web � the most compelling aspect of the desktop experience. And that has opened consumers� eyes to the possibilities.�

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