A smartphone is a smart buy during the recession
Issue date: 6/14/09 Section: Technology
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Unlike ordinary mobile phones, smartphones offer Internet access, e-mail, music and calendars that sync to desktop or notebook computers. In addition, they have all the features of a standard mobile phone - contacts, camera, texting, games and the ability to dial favorite phone numbers with the press of a single button.
And while Americans are tightening their belts, they're also discovering that saving money doesn't have to be painful, said Lynn Fox, who keeps an eye on smartphone trends at Palm, Inc.
"Buying a low-priced smartphone can feel like a splurge without much impact on your wallet," she said. "It's a great way to get something nice for yourself or someone you care about, without breaking the bank. And it can actually wind up saving you money."
In the last quarter of 2008, U.S. smartphone sales rose 12 percent over the same period in 2007, and constituted about 23 percent of all handset sales at the end of last year, according to market research firm, NPD Group. Fox says the smartphone trend may seem contrary to Americans' new belt-tightening mindset, but actually makes budgetary sense.
"Smartphones are fast, easy, reliable and convenient, and are the most efficient way to stay in touch with personal and professional contacts, news and other information. And you can do it on your own time, at your own pace. Customizable features let you bring the world to your phone," said Fox.
"Rather than carry multiple devices, like a regular mobile phone and a PDA, you can get all the functions you need in a single, compact device. With prices dropping, smartphones are even more cost-competitive with traditional mobile phones," she said. And she notes that with a more powerful phone, many customers are able to cancel their conventional landline phone, saving them far more than the cost of upgrading their phone.
Palm's Centro leads the way in terms of price, typically selling for just $99 - or even as little as $49, depending on the carrier. "Centro has been particularly popular among college students who have less to spend but need the Internet, texting and other applications at their fingertips," said Fox. "Many people see smartphones as a luxury that is at once practical and affordable."
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