With Aftermarket Smartphone Accessories Accounting for 64% of Accessory Revenue, OEMs Turn to Smart Accessories to Gain an Even

  With Aftermarket Smartphone Accessories Accounting for 64% of Accessory
  Revenue, OEMs Turn to Smart Accessories to Gain an Even Larger Profit,
  According to ABI Research

Business Wire

OYSTER BAY, N.Y. -- March 27, 2013

While the shipments for smartphones have reached over 40% of all handsets, the
shipments of aftermarket smartphone accessories account for 56% of accessory
shipments and 64% of revenues. “With a large portion of the accessory
ecosystem focusing on smartphones, handset and accessory OEMs are looking to
make their accessory products ‘smart’ in an attempt to differentiate, extend
brand, and increase revenues,” comments senior analyst, Michael Morgan.
Currently the smart accessory ecosystem is dominated by health and fitness
applications that are leveraging a combination of the GATT profile in
Bluetooth v4.0, and low-power sensors made by leading IC vendors such as Texas

ABI Research believes that leveraging the processing and software capabilities
inherent in mobile devices in combination with hardware products will open a
new vector for accessory OEMs looking to create differentiated accessory
products. Furthermore, research into smart accessory products indicates that
adding ‘smart’ capabilities to accessories can increase product ASPs by 30% to
100% over non-smart versions of the same product.

Smart accessories pose challenges for accessory OEMs who tend to have limited
electrical engineering and software engineering skillsets. However, the need
to differentiate their products and meet the challenge from new product
innovations will eventually force many accessory OEMs to learn on the job.
This new technology vector for accessories also poses an opportunity for IC
vendors looking to expand their reach beyond the mobile device and handset

“The growing interest in smart watches, smart glasses, and wearable sensors
will drive a need for processing power that resides outside of the smartphone.
It will be imperative that IC vendors and accessory OEMs determine the best
way to extend the use case of smartphones into the green field opportunity of
smart accessories,” adds senior practice director, Jeff Orr.

These findings are part of ABI Research’s Mobile Device Accessories
(http://www.abiresearch.com/research/service/mobile-device-accessories/) and
Bluetooth Research Services

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 70+ research and advisory services. Est.
1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.


ABI Research
Christine Gallen, +1-516-624-2542
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