Smartphone sales pick up steam in U.S.

image Nearly a quarter of all handsets sold in the U.S. during the fourth quarter were smartphones, according to the NPD Group, a market research firm.

A new study released on Tuesday indicates that about 23 percent of all handset sales in the U.S. during the fourth quarter of 2008 were smartphones. This was up from 12 percent of all handset sales in the fourth quarter of 2007.

But as sales soared, prices for these advanced phones dropped. In fact, the average price of a smartphone during the quarter dropped by 23 percent from $216 in the fourth quarter of 2007 to $167 during the fourth quarter of 2008, NPD said. Apple’s new iPhone 3G, priced at $199 with a two-year service contract with AT&T, helped lead the growth in smartphone volumes, but also led the industry in terms of declining prices.

The $200 price range appears to be the sweet spot for consumers in this market. And other manufacturers including Research In Motion with its Blackberry Storm on Verizon Wireless, the T-Mobile G1, and the-soon-to-be-launched Palm Pre from Sprint Nextel all fall within this price range.

See the full article at CNET News.

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