Deep Discounts On Smartphones Drive U.S. Adoption Rates To Nearly A Third


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Special offers on many of the popular smartphones in the fourth quarter drove penetration to nearly a third in the U.S., according to The NPD Group, a wireless market research.

The report found that smartphones are now in the hands of about 31 percent of the U.S. population, growing from only 23 percent in the year-ago period. Of those phones purchased in the fourth-quarter, nearly two-thirds cost $150 or less, and many more were bought for even less. “Although we are seeing more expensive models among the best-selling handsets, carriers are now offering some popular smartphones for less than $100,” said Ross Rubin, NPD’s executive director.

As penetration rises, Rubin cautions that it will take much more than the price of the handset to keep adoption rates high. Rather other factors, he said, such as the price of data plan will become the biggest hurdle.